Shares of Adani Gas rose 3 per cent on Thursday after the company announced reduction in prices of compressed natural gas (CNG) and piped natural gas (PNG) used for cooking in household kitchens, in line with a cut in raw material rates.

The firm, which retails CNG to automobiles in some districts of Haryana, Gujarat, Rajasthan, Madhya Pradesh, and Uttar Pradesh, cut CNG rates between Rs 1.5 per kg to Rs 3.6 per kg.

The rate of natural gas piped to household kitchens for cooking purposes has been cut by Re 1 per standard cubic meter (scm), the company said in a statement.

Adani Gas said while CNG price in Mahendragarh district of Haryana has been cut by Rs 3.6 per kg to Rs 54.20 per kg, the reduction in Faridabad and Palwal districts of the states will be Rs 2.75 per kg to Rs 48.02 per kg.

In Khurja district of Uttar Pradesh as well as Ahmedabad and Vadodara in Gujarat, the reduction would be Rs 2.75 per kg.

Adani Gas said PNG price in Haryana and Gujarat has been cut by Re 1 per scm to Rs 29.84 per scm and Rs 29.09 per scm respectively.

Indraprastha Gas Ltd (IGL) had last week cut CNG price in Delhi by Rs 3.20 to Rs 42 per kg.

The reductions by Adani Gas and IGL follow the government cutting the price paid for natural gas produced from domestic fields by 26 per cent to USD 2.39 per million British thermal unit effective April 1.

The stock was up 2.92 per cent at Rs 93.50 on BSE.