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Prices for CNG and PNG are reduced by Adani Total Gas by up to 8.13/kg and 5.06 scm

by TLAteam April 8, 2023April 8, 2023
written by TLAteam April 8, 2023April 8, 2023
Prices for CNG and PNG are reduced by Adani Total Gas by up to 8.13/kg and 5.06 scm

CNG will cost Rs 72.03 per kg in Vadodara and Rs 73.29 in Ahmedabad compared to Rs 79.33 and Rs 79.34 earlier.

Business News

On Saturday, the city gas joint venture between the Adani Group and TotalEnergies of France announced price reductions for CNG of up to Rs. 8.13 per kg and piped cooking gas of up to Rs. 5.06.

This comes after the government altered the pricing structure for natural gas, which is converted into compressed natural gas (CNG) for use in vehicles and piped into homes’ kitchens for cooking.

In a statement, the company said that for piped cooking gas, called PNG, rates have been reduced in Vadodara, Ahmedabad and other cities of Gujarat where it operates. Also, PNG prices have been cut in Khurja in Uttar Pradesh and Faridabad and Palwal in Haryana.CNG prices have been reduced across 21 cities where it operates.

These range from Vadodara in Gujarat to Cuddalore in Tamil Nadu, Udaipur in Rajasthan and Bhind in Madhya Pradesh.

“Adani Total Gas Ltd (ATGL) welcomes the Government of India’s landmark decision to link the APM (Administered Price Mechanism) price for gas supply to CNG vehicles and residential households to 10 per cent of the Indian crude basket with a floor of USD 4 and a cap of USD 6.5 per million British thermal units,” the statement said.

ATGL said it has decided to pass the benefit of the reduction in natural gas price from $8.57 per mmBtu to $6.5. This would enhance ”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 compared to LPG prices.”

From Saturday, ATGL has reduced the price of CNG up to Rs 8.13 per kg and the price of PNG by up to Rs 5.06 standard cubic metres. PNG, excluding taxes, will now cost Rs 46.84 per scm, down from Rs 51.90. In Ahmedabad, it will be priced at Rs 49.83 per scm against Rs 53.90 previously.

In comparison to the previous prices of Rs 79.33 and Rs 79.34, CNG will now cost Rs 72.03 per kg in Vadodara and Rs 73.29 in Ahmedabad. According to ATGL, the Government of India’s historic decision to reform gas prices will act as a growth catalyst to increase the footprint of domestic PNG and CNG vehicles quickly, ensuring that natural gas will increase from 6.5 to 15% of India’s energy mix by 2030, in line with the Government of India’s vision.

“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 statement said. Besides the reduction in the prices of CNG and PNG, ATGL also announced a reduction in PNG prices for industrial and commercial consumers by Rs 3 per scm in the geographical areas (GAs) where it operates.

“This will enable our Industrial and Commercial consumers to consume higher quantities of natural gas, thus, not only contributing towards the environment but also optimising their product costs.” ATGL is one of the largest city gas companies currently supplying CNG and PNG to 7 lakh domestic, 4,000 commercial, 2,000 industrial customers and over 3 lakh CNG users across 460 CNG stations in India.

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