Adani Total Gas lowers prices of PNG and CNG

19 Aug 2022 , 09:51 AM

According to a statement released by the Adani Group company on August 18, Adani Total Gas Ltd (AGTL) has reduced the cost of compressed natural gas (CNG) and piped natural gas (PNG) in 19 of the regions it serves as a result of the government increasing domestic gas allocation and lowering the unified base price.

Companies that provide city gas distribution (CGD), including Adani Total Gas, have requested assistance from the Ministry of Petroleum and Natural Gas (MoPNG) due to supply issues that have arisen as they expand their networks. The rules for domestic gas allocation and pricing, which are set by the Administrative Price Mechanism (APM), have since been updated by the government.

Adani Total Gas, which had previously raised rates, claimed to have reversed the trend and lowered domestic PNG costs by up to Rs3.20 per SCM and domestic CNG prices by up to Rs4.7 per kg. The company’s 19 geographical zones covered by the reduction in gas prices began on August 17, 2022.

“At the same time as market-linked imported RLNG has been subject to erratic and noticeably higher international pricing, ATGL has been calibrating the pass-through of increase in the price of RLNG or UBP to protect consumer interest. The recent involvement by the Indian government has aided the CGD sector in lowering the cost of home PNG and CNG to end users”, the company said in a statement.

The company had earlier this month reported seeing a smaller allotment of gas sold at the APM price and anticipating rising gas prices in the “near future” as a result of the worldwide supply deficit.