Adani Total Gas Ltd has announced that it has received a notification from GAIL (India) Ltd regarding a 16% reduction in its Administered Price Mechanism (APM) domestic gas allocation, effective from October 16, 2024. This reduction affects the company’s supply of Compressed Natural Gas (CNG) and Domestic Piped Natural Gas (PNG).
The company noted that the reduction in gas allocation will have an adverse impact on its profitability. Despite this, Adani Total Gas is taking measures to optimize profitability and ensure uninterrupted gas supply to its customers. The company is also evaluating potential adjustments in retail pricing to mitigate the effects of this reduced allocation.
This reduction is part of an industry-wide move, and the company, along with other stakeholders, is working to resolve the situation in the best interest of consumers and to support the continued growth of CNG vehicles in India
