Adani Total Gas Cuts Prices of CNG, PNG: Here’s Why, New Rates

  • Investing.com
Adani Total Gas Cuts Prices of CNG, PNG: Here’s Why, New Rates
Credit: © Reuters.

By Malvika Gurung

Investing.com -- The natural gas distributor Adani Total Gas (NS: ADAG ) Ltd has cut the prices of compressed natural gas (CNG) and piped natural gas (PNG) rates following the Indian Government’s recent change in the pricing formula of natural gas to put a check on the runaway prices of cooking gas.

The Adani Group company has announced to reduce the price of CNG by up to Rs 8.13/kg and that of PNG by up to Rs 5.06/scm (standard cubic meter), coming into effect from April 8, 2023.

Starting Saturday, CNG will cost Rs 72.03/kg in Vadodara from Rs 79.33/kg earlier, and Rs 73.29/kg in Ahmedabad as compared to Rs 79.34 before the cut. Its prices have been pared in 21 cities where ATGL operates.

Similarly in Ahmedabad, PNG will cost Rs 49.83/scm from Rs 53.9 earlier.

“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,” said ATGL in a statement on Saturday.

The gas company has built on the Centre’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 cap of $6.5 million British thermal units.

"The substantial reduction in the CNG and PNG prices shall bring the much-needed relief to the large number of users of both CNG and PNG in the country,” the Adani Group company added.

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  • hari krishna @hari krishna
    Good news for Adani gas, it going to rally again. It will be in upper circuit atleast upto ₹2000.
    Like 0
  • Samay Jain @Samay Jain
    what impact will take place on the stock of the company ?
    Like 0
  • Kausik Mondal @Kausik Mondal
    Is the price cut good for the Gas companies like ATGL and Gail?
    Like 1
    • Akash Omar @Akash Omar
      yes, positive.. as it will increase the demand.
      Like 0
    • Raven Eyes @Raven Eyes
      Dude of course its not good for the company because their margin will shrink but in long run its good because it'll provide stability in margins instead of doing very good or very bad in specific quarters
      Like 1

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