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Adani Total Gas Limited (ATGL) has announced a reduction in the price for compressed natural gas (CNG) and piped natural gas (PNG) effective April 08, 2023 across its operational areas.
In a price revision announcement late on Friday night, the gas distribution company announced a reduction in the price of CNG by upto ₹8.13 per kg and upto ₹5.06 per standard cubic meter (scm) for the PNG across its geographical areas (GAs).
ATGL also reduced the PNG prices by ₹3 per scm for its industrial and commercial consumers in Ahmedabad, Vadodara, Faridabad, Khurja and Palwal.
The reduction in prices comes after the Centre’s approval for the recommendations of the Kirit Parikh-led committee on gas pricing mechanism for domestically produced gas.
The committee has proposed a floor price of $4 per metric million British thermal unit (MMBTU) and a ceiling price of $6.5 for natural gas produced by the State-run explorers under the old APM fields. The mechanism of pricing is believed to reduce the cost of CNG, PNG for the CGD players.
Also read: Revised natural gas pricing norms to benefit consumers, CGD firms
“In line with our policy to prioritise our end consumers, ATGL has decided to pass through the benefit of the New Gas Pricing guidelines announced by the Centre to our large number of Home PNG and CNG consumers, thus enhancing the affordability of PNG and CNG with a saving of over 40 per cent for CNG consumers as compared to petrol prices and around 15 per cent for Home PNG consumers as compared to LPG prices,” the company said.
“ATGL believes that this landmark decision of reforming gas prices by the government shall act as a growth catalyst to enhance the footprint of Home PNG and CNG vehicles in a rapid manner to ensure an increase in the share of natural gas from 6.5 per cent to 15 per cent in India’s energy basket by 2030,” it added.
The reduction in gas prices will benefit ATGL’s about 7 lakh domestic PNG users, 4,000 commercial users, about 2,000 industrial customers and over 3 lakh CNG users across 460 CNG stations in India.
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