Indraprastha Gas Ltd (IGL) stocks saw a surge on Friday post the Supreme Court notice on Thursday seeking responses from the company and Petroleum Ministry.
The IGL scrip closed 4.85 per cent higher at Rs 251.85 a share on the BSE. The stock hit intra-day high of Rs 261.
On Thursday, a Supreme Court bench asked the nodal Ministry and IGL to respond by August 31 to a special leave petition filed by Petroleum & Natural Gas Regulatory Board (PNGRB) in July challenging the Delhi High Court order of June over the regulator’s row with IGL.
According to PNGRB’s plea in the apex court, the High Court did not consider that the regulator has asked the company only to fix network and compression charges and not the retail price. The Delhi High Court had quashed the PNGRB order asking IGL to cut tariffs. This left PNGRB with no powers as a regulator.
The High Court bench had termed the regulator’s order as “Illegal” and also observed that the regulator was not “empowered” to fix or regulate the maximum retail price at which the gas is to be sold by retailers.
IGL had challenged a PNGRB order on network tariff and compression charge issued on April 9.
According to the PNGRB order, IGL can charge Rs 38.58 for every million British thermal unit (a measurement of heat value of fuels) for transmission of gas, against Rs 104.05 that it charges now. Also, CNG compression tariff was pegged at Rs 2.75 a kg. IGL charges Rs 6.66. These rates are to be retrospectively applicable from April 1, 2008.