Shares of CNG retailer Mahanagar Gas Ltd gained 2% following the announcement from the Brihanmumbai Municipal Corporation (BMC) mandating the switch to clean and eco-friendly fuels by July 8, 2025.

The directive, issued to all eateries, bakeries, hotels, and roadside vendors in Mumbai, requires them to transition to Compressed Natural Gas (CNG) or Piped Natural Gas (PNG) in place of other polluting fuels.

The BMC’s move aims to improve air quality and reduce pollution in the city by encouraging businesses to adopt cleaner, sustainable energy sources.

With CNG and PNG being recognised as cleaner options, this initiative is expected to benefit not only the environment but also companies like Mahanagar Gas, which specialises in the distribution of natural gas to residential, commercial, and industrial customers.

The rise in Mahanagar Gas shares follows growing market expectations that the shift in fuel usage will drive increased demand for their services.

As part of the new directive, businesses that fail to comply with the regulations by the July deadline may face penalties.

With this push toward greener fuel alternatives, BMC aims to reduce harmful emissions and improve the overall air quality in the city, reinforcing the shift towards sustainable energy solutions.

In January, Mahanagar Gas announced an increase in its allocation of domestic gas at administered price mechanism (APM) prices, after a communication from GAIL (India) Ltd, the nodal agency for domestic gas distribution.

Effective January 16, 2025, the allocation has risen by 26%, increasing the supply of compressed natural gas (CNG) from 37% to 51%.

Shares of Mahanagar Gas were trading 1.05% higher at ₹1,291.6 apiece on the BSE at 11:07 am.

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