+
Govt Cuts Administered Price Mechanism Gas for City Distributors
OIL & GAS

Govt Cuts Administered Price Mechanism Gas for City Distributors

The government has reduced the allocation of lower-cost Administered Price Mechanism (APM) gas to city gas distribution firms such as Indraprastha Gas Ltd (IGL), Mahanagar Gas Ltd (MGL), and Adani Total Gas Ltd, replacing the shortfall with costlier New Well Gas.

Gas Authority of India Ltd (GAIL), the nodal agency for domestic gas supply, issued notices informing companies of allocation cuts effective 16 April. APM gas now meets about thirty-four per cent of total city gas demand, down from fifty-one per cent a year ago.

APM gas, currently priced at $6.75 per million British thermal unit, is extracted from ageing legacy fields. The gap is being filled with New Well Gas, which is priced at twelve per cent of the Indian Crude Basket.

IGL and MGL reported a twenty and eighteen per cent reduction respectively, while Adani Total Gas saw a fifteen per cent cut. All three firms expect a negative impact on profitability and are exploring measures to offset the effect.

The switch to costlier gas is likely to increase retail prices for compressed natural gas (CNG) and piped natural gas used in households.

Source: Press Trust of India

The government has reduced the allocation of lower-cost Administered Price Mechanism (APM) gas to city gas distribution firms such as Indraprastha Gas Ltd (IGL), Mahanagar Gas Ltd (MGL), and Adani Total Gas Ltd, replacing the shortfall with costlier New Well Gas. Gas Authority of India Ltd (GAIL), the nodal agency for domestic gas supply, issued notices informing companies of allocation cuts effective 16 April. APM gas now meets about thirty-four per cent of total city gas demand, down from fifty-one per cent a year ago. APM gas, currently priced at $6.75 per million British thermal unit, is extracted from ageing legacy fields. The gap is being filled with New Well Gas, which is priced at twelve per cent of the Indian Crude Basket. IGL and MGL reported a twenty and eighteen per cent reduction respectively, while Adani Total Gas saw a fifteen per cent cut. All three firms expect a negative impact on profitability and are exploring measures to offset the effect. The switch to costlier gas is likely to increase retail prices for compressed natural gas (CNG) and piped natural gas used in households. Source: Press Trust of India

Related Stories

Gold Stories

Next Story
Real Estate

Peninsula Land launches 19 luxury villas in Pune

Pune’s residential landscape is witnessing a shift as premium homebuyers increasingly seek larger spaces, privacy and independent living options beyond high-rise apartments. Addressing this demand, Peninsula Land Limited, part of the Ashok Piramal Group, has launched AshokVillas, an exclusive collection of 19 premium furnished villas in Gahunje, Pune.The development combines the independence of a standalone home with the convenience and security of a managed residential community. Designed around low-density horizontal living, AshokVillas offers residents private spaces while providing acces..

Next Story
Infrastructure Urban

MyBranch Expands South India Network with 16 Workspace Centres

MyBranch has expanded its South India presence with a 50,000 sq ft flexible workspace network comprising 16 centres across 14 cities in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.The expansion reflects growing demand for flexible office infrastructure as businesses establish regional teams, satellite offices and operations beyond traditional metropolitan markets. MyBranch’s network spans Bengaluru, Coimbatore, Guntur, Hanamkonda, Hubballi, Hyderabad, Madurai, Mangaluru, Rajahmundry, Salem, Tirupati, Vellore, Vijayawada and Visakhapatnam, with a large office space in Chennai also und..

Next Story
Building Material

Walplast Launches Moisture-Resistant Gypsum Plaster Solutions

Walplast Products Pvt. Ltd. has expanded its HomeSure GypEx portfolio with the launch of GypEx MoistShield and GypEx Gold, two gypsum plaster solutions designed to address moisture-prone applications and improve plastering efficiency.The new products have been developed in response to the growing demand for faster construction processes, improved material performance and consistent surface quality. The solutions aim to simplify interior plastering while addressing specific application requirements across construction environments.“Through HomeSure GypEx MoistShield and GypEx Gold, we are exp..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code