Adani Total Gas slashes prices of CNG by Rs 8.13/kg, PNG by Rs 5.06/scm
Adani Total Gas Limited (ATGL) announced that the price of Compressed Natural Gas (CNG) was reduced by Rs 8.13 per kg and the rate of Petroleum Natural Gas (PNG) by Rs 5.06 per standard cubic metre (scm). The revised prices came into effect on April 8 at midnight.
The price revision came after the Union Cabinet on Thursday approved new guidelines on gas pricing, which paves the way for natural gas prices in India to be linked to global crude prices. In a statement, ATGL said it welcomed the Central government’s decision to link the Administered Price Mechanism (APM) Price for gas supply to CNG vehicles and residential households to 10% of the Indian crude basket with a floor of $4 and a ceiling 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% for CNG consumers as compared to Petrol prices and around 15% for Home PNG consumers as compared to LPG prices,” the statement read.
“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 reduction of gas prices in CNG and PNG in our various Geographical Areas (GA’s) across the country is provided in the attached table,” it added.
Union Minister Anurag Thakur briefed reporters after the Cabinet meeting that natural gas produced from legacy or old fields, known as APM gas, will now be indexed to crude oil price instead of pricing it based on gas prices in surplus nations such as the US, Canada and Russia.
“Rates will be decided every month instead of the current practice of bi-annual revision,” he said. On Friday, Mahanagar Gas, a Gail India subsidiary, announced a slash in the retail price of CNG by Rs 8 per kg and domestic PNG by Rs 5 per scm across its licensed area.