The total amount of gas supplied increased: By its decree of December 31, 2024, the Ministry of Petroleum and Natural Gas has reorganized some of the distributions of gas produced from subterranean and underwater sources.
Increased Gas Supply: Indraprastha Gas Limited, also known as IGL, Adani-Total, and Mahanagar Gas Limited (MGL), are among the urban gas distribution businesses that now receive more affordable gas from the government. The stock markets have received this information from these companies. The government had cut the gas allotment to these enterprises last year, or in 2024. According to city gas distribution firms, the provision of more APM gas will begin on January 16.
IGL gave information to the stock markets
In a statement to the stock exchanges, Indraprastha Gas Limited stated: “The domestic gas allocation to IGL has been raised to 31 percent as of January 16, 2025, in accordance with the letter obtained from GAIL (India) Limited, the nodal agency for domestic gas allocation. As a result, domestic gas’s percentage in the CNG category will rise from 37% to 51%. Additionally, the business has a deal with a major supplier for competitively priced imported LNG at a rate of roughly one million standard cubic meters per day. According to IGL, the company’s profitability will benefit from both this revision and the agreement for increased quantity.
According to Adani-Total Gas Limited, retail prices will be impacted.
“The allocation of APM gas has been increased by 20 percent from January 16, 2025,” according to Adani-Total Gas Limited, a company that sells CNG in Gujarat and other cities. According to the corporation, this rise will benefit it and aid in keeping consumer retail prices stable.
Mahanagar Gas Limited’s gas allocation also went raised.
The amount allotted for residential gas at the APM price has grown by 26%, according to Mahanagar Gas Limited, a business that sells CNG in Mumbai and neighboring areas. As a result, CNG’s share of the budget has grown from 37% to 51%.
Why was the amount of gas supplied to businesses increased?
Due to limited production, the government reduced the amount of APM gas (cheap natural gas from older locations like Mumbai High and Bay of Bengal) supplied to city gas retail dealers by as much as 40% in October and November of last year. City gas distributors raised the cost of CNG by two to three rupees per kilogram as a result. This is because these businesses were forced to purchase gas at a greater cost. As a result, CNG is no longer as appealing as alternative fuels like diesel. Following this, by virtue of its directive dated December 31, 2024 the Ministry of Petroleum and Natural Gas has reorganized various allocations of gas produced from underground and undersea sources.
For the manufacture of LPG, the ministry has directed a reduction in supply to the public sector GAIL and Oil and Natural Gas Corporation (ONGC), and some of that supply has been moved to municipal gas distribution units. This indicates that 25.5 crore standard cubic meters of gas are consumed every day to xproduce LPG. During the January–March quarter, 12.7 crore standard cubic meters—half for GAIL and half for ONGC—will be transferred for usage in the CNG/pipeline cooking gas (PNG) segment.
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