Adani Total Gas cuts CNG prices by ₹8.13/kg, PNG by ₹5.06/SCM

The new prices are effective from today.

A day earlier, the Union Cabinet announced new gas pricing guidelines for the bulk of domestically produced natural gas by state-run explorers.

The Union Cabinet on Thursday approved new gas pricing guidelines, paving the way for linking natural gas prices in India to global crude oil prices. Under the new guidelines, natural gas price will be 10% of the monthly average of the Indian crude basket, the weighted average of Dubai and Oman (sour) and Brent crude (sweet) oil prices.

The cabinet also approved a floor price of $4 per metric million British Thermal Unit (mmBtu) and a ceiling of $6.50 per mmBtu under the Administered Price Mechanism (APM) for gas pricing.

“In line with our policy of giving priority to our end consumers, ATGL has decided to extend the benefits of the new gas pricing guidelines announced by the Government of India to a larger number of domestic PNG and CNG consumers, thus increasing the affordability of PNG and CNG happened. CNG with savings of over 40% for CNG consumers and about 15% for domestic PNG consumers as compared to petrol prices, Adani Total Gas said in a statement.

The company said, “…this will enable our industrial and commercial consumers to consume natural gas in higher quantities, thereby not only contributing towards the environment, but also optimizing their product costs.”

According to a report by Crisil Ratings, the revised mechanism will help cut down the cost of CNG, PNG by 9 -11%, which would otherwise have gone up if the previous regime had continued.

“This revised gas pricing norms will provide greater stability in gas prices for city gas distributors and continued competition with alternative fuels, thus boosting demand and supporting larger capex plans,” it said.

Mahanagar Gas Limited (MGL), a subsidiary of GAIL (India), has also announced a drastic reduction in the retail price of CNG. 8 per kg and by PNG 5 per scm in its licensed area.