Adani Total Gas slashes CNG, PNG prices after Centre floats its new gas pricing formula; check new rates

Adani Total Gas Ltd (ATGL), a flagship company of Gautam Adani-led Adani Group, has slashed the CNG prices by up to Rs 8.13/kg and PNG price by up to Rs 5.06 per standard cubic metre, which will come into effect from Saturday (April 8).

The prices were revised a day after the Union government announced a revised new pricing mechanism for the bulk of domestically-produced natural gas by state-run explorers. The new system of pricing, as per the government, will reduce the CNG and PNG costs.

The Cabinet decision was based on the insights of an expert panel headed by economist Kirit Parikh, which proposed a floor of $4 per unit and cap of $6.5 for natural gas produced from old APM fields operated by state-run explorers – Oil & Natural Gas Corporation (ONGC) and Oil India Limited (OIL).

According to a report in ANI, after Mahanagar Gas Limited (MGL), ATGL is the second company to revise its CNG and PNG rates, following the new Administered Price Mechanism (APM) price formula.

ATGL in a statement said: "Effective midnight tonight, ATGL is pleased to announce a reduction in the price of CNG up to Rs 8.13 per kg and the price of PNG up to Rs 5.06 per scm.”

The Gautam Adani-led company welcomed the Centre’s new APM, where it linked the APM for gas supply to CNG vehicles and residential households to 10 per cent of the Indian crude basket with a floor of $4 and a cap of $6.5 per MMBTU.

"In line with our policy to prioritize our end consumers, ATGL has decided to pass through the benefit of the New Gas Pricing guidelines announced by the Government of India to the large numbers 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 press statement issued by the company stated.

On Friday, Gail India subsidiary Mahanagar Gas (MGL) too revised its prices and slashed the retail price of CNG by Rs 8/kg and domestic PNG by Rs 5/SCM across its licenced area in Mumbai. The revised retail price of CNG provided by MGL is Rs 79 per kg and domestic PNG price is Rs 49/SCM, effective from April 7 midnight.

In February, MGL had cut down its CNG price by Rs 2.5/kg, but prices are still around 80 per cent more than those in April last.

On the other hand, ATGL has one of the biggest networks of CNG and PNG supply to ~7 lakh domestic, ~4,000 commercial, ~ 2,000 industrial customers, and over three lakh CNG users across 460 CNG stations in the country.

(With agency inputs)

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