However, the benefit for oil marketing companies (OMCs) may be limited. Mittal noted that the pricing details are still unclear, but US LPG “might be at some discount to the Middle East LPG prices,” offering some relief to state-run fuel retailers that have faced losses in recent years.
According to him, OMCs were losing “almost like ₹200 per cylinder” in FY25. Losses have since narrowed sharply due to easing crude and LPG prices, and are now down to “only ₹30-40 per cylinder.”The US will supply only 10% of India’s LPG imports, so the overall impact remains limited. “I would not read much into this,” Mittal said, calling it a small incremental benefit.
On the city gas distribution (CGD) segment, Mittal maintained a cautious view, especially on CNG-heavy players. The ongoing decline in APM gas allocation continues to hurt both volumes and margins.
“We have a negative view on the CNG dominated company, which is Indraprastha Gas Limited (IGL),” he said, though he added that the stock may not fall much further because it has already corrected.
Mahanagar Gas (MGL) remains an “add” largely due to valuations, while Gujarat Gas is Mittal’s top pick in the space.
He expects LNG prices — the key input for Gujarat Gas — to moderate by CY26 as “30 to 40% capacity” is added globally by the US and Qatar. That could help the company regain its cost competitiveness.
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