Adani Total Gas Limited informed the stock exchanges on April 15, 2025, that it has received communication from GAIL (India) Ltd, the nodal agency, about a 15% reduction in its allocation of APM (Administered Price Mechanism) gas. The cut will take effect from April 16, 2025.
As per the regulatory filing, the reduced APM gas volume will be replaced by New Well Gas (NWG), which comes at a significantly higher price. The company has cautioned that this change will adversely impact its profitability.
“The Company is exploring all measures to mitigate the impact,” Adani Total Gas said in its disclosure. This move comes in continuation of earlier letters issued by the company on October 17, November 15, and January 9 regarding changes in APM allocations.
The development is part of a broader trend affecting gas distribution companies in India, as the government rebalances domestic gas distribution strategies. The move to replace cheaper APM gas with higher-cost NWG is expected to pressure margins for city gas distribution players.
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