Adani Total Gas gets a 20% hike in APM gas allocation, effective January 16

Adani Total Gas Ltd on Thursday (January 9) announced that it has received communication from the nodal agency, GAIL (India) Ltd, regarding a 20% rise of its administered price mechanism (APM) gas allocation, effective from January 16, 2025.

“…the company has been intimated by the Nodal agency (GAIL (India) Ltd) that the allocation of APM Gas has been revised upwards by 20%, effective 16th January 2025,” Adani Total Gas said in a regulatory filing.

This revision comes after previous updates on the reduction in APM gas allocation, as communicated on October 17 and November 15, 2024. The increase in allocation is expected to have a positive impact on the company. “This upward revision will have a positive impact on the company and will help in stabilising the retail prices to end consumers,” it said.

Last week, the government slashed the allocation of natural gas used for LPG production and diverted the low-priced fuel to city gas retailers like Indraprastha Gas Ltd and Adani-Total Gas Ltd to meet a part of their requirement for CNG/piped cooking gas supplies, according to an official order.

The government had in October and November last year cut supplies of low-priced natural gas coming from old fields such as Mumbai High and Bassein fields in the Bay of Bengal, to city gas retailers by as much as 40% in view of limited output.

This led to city gas retailers hiking CNG prices by ₹2-3 per kg and threatening more increases as they replaced lost volumes with higher-priced input fuel. The price hike made CNG less attractive when compared to alternate fuels like diesel. To resolve this, the Ministry of Petroleum and Natural Gas in a December 31 order rejigged some allocations of gas produced from below ground and undersea.

City gas retailer IGL retails CNG to automobiles and pipes natural gas to households for cooking purposes in the national capital and adjoining cities; Mahanagar Gas Ltd does the same in Mumbai; and Adani Total Gas Ltd operates in Gujarat and elsewhere.

Shares of Adani Total Gas Ltd ended at ₹681.60, down by ₹22.60, or 3.21%, on the BSE.