Energy stocks are trading in the green led by Reliance Industries Ltd and Essar Oil. As per a leading financial daily, state run energy firms - IOC (Indian Oil Corp), GAIL (Gas Authority of India Ltd) and Indraprastha Gas Ltd. have alleged that private companies in city gas distribution (CGD) space have suppressed input costs and have bid aggressively to get licences to supply natural gas. These licenses would allow the private companies to distribute gas to households and automobiles. The regulatory board wants to expand natural gas usage to 300 cities, out of which GAIL wants to set up networks in 200 cities. The above mentioned state run firms have enjoyed a monopolistic position in the CGD space till now. They are now facing tough competition from the domestic and foreign firms such as BG group and the Adani group. In order to stall the private companies' plans to enter CGD, the state run firms have approached the Petroleum and Natural Gas Regulatory Board (PNGRB) regarding the unfair bidding.
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