Solid gains

The government's decision to link domestic-gas prices to the four international gas-trading hubs has brought a windfall for Indian gas-consumer companies. This decision has led to an 18 per cent cut in gas prices - the fourth price cut taken since October 2014. Natural-gas price now stands at $2.75 per mmbtu (million British thermal units) as compared to the earlier rate of $3.37 per mmbtu. A fall in gas price has, in the past, not translated to an equivalent fall in the price for consumers. Gas-supply companies have historically kept some of the gains for themselves. We discuss three gas companies - Gujarat Gas, Indraprastha Gas and GAIL, which are set to gain. Gujarat Gas Gujarat Gas' gross margins hit an all-time high of `7.2 per