City gas distribution (CGD) companies are looking to expand their retailing business through mobile refuelling units (MRUs), as oil marketing companies are not relenting on lowering commissions for letting distribution companies use their premises for selling compressed natural gas (CNG). Distribution companies are also increasing their own CNG presence. Mumbai-based Mahanagar Gas Ltd (MGL) and Delhi’s Indraprastha Gas Ltd (IGL), among others, areindra piloting MRUs and have invited expressions of interest for setting up more units. City gas distribution companies, such as MGL, IGL, and Gujarat Gas, have urged the Union government to negotiate with the OMCs after they demanded 90-100% increase in commissions from the existing ₹4.5 per kg to ₹7-8 per kg. Queries emailed to the spokespersons of OMCs and city gas distributors on Monday did not elicit a response till press time.
Source: Mint May 31, 2021 19:41 UTC