Adani Total Gas Ltd (AGTL) has cut prices of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) across 19 geographical areas that it caters to after the government increased the allocation of domestic gas and reduced the unified base price, the Adani Group company said in a statement on August 18.
City gas distribution (CGD) companies, like Adani Total Gas, had sought help from the Ministry of Petroleum and Natural Gas (MoPNG) as they faced supply constraints even as they were expanding their network. Subsequently, the government has revised the guidelines for the allocation of domestic gas, which is sold at price determined by the Administrative Price Mechanism (APM), and the price.
Adani Total Gas, which had earlier increased the prices, said it has reversed the increase in the prices and reduced the price for domestic PNG by up to Rs 3.20 per SCM and that of CNG by up to Rs 4.7 per kg. The reduction in gas prices has been effected from 17 August 2022 across 19 geographical areas covered by the company.
“While market-linked imported RLNG has been witnessing volatile and significantly higher international prices, ATGL has been calibrating the pass-through of increase in the price of RLNG or UBP to take care of consumer interest. The recent intervention by the Government of India has helped the CGD industry to moderate down the prices of CNG and home PNG to the end consumers,” the company said in the statement.
Earlier this month, the company had said that it witnessed a lower allocation of gas sold at the APM price and it expects gas prices to remain high in the “near future” due to the global supply shortage.
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