Adani Total Gas Ltd shares dropped by nearly 2% today after the company announced a 16% reduction in its Administered Price Mechanism (APM) domestic gas allocation from GAIL (India) Ltd. The cut, effective October 16, 2024, is expected to impact the company’s supply of Compressed Natural Gas (CNG) and Domestic Piped Natural Gas (PNG).
The company acknowledged that this reduction will likely affect profitability. In response, Adani Total Gas is working to optimize its operations to ensure uninterrupted gas supply to customers. The company is also considering retail price adjustments to mitigate the financial impact of the reduced allocation.
This move is part of an industry-wide adjustment, and the company is engaging with other stakeholders to manage the situation while supporting the growth of CNG vehicles in India.
As of 9:22 am, the shares were trading 1.84% lower on the NSE.
