After Mahanagar Gas Limited (MGL), Adani Total Gas Ltd (ATGL) became the second Indian energy company that announced a reduction in compressed natural gas (CNG) and piped natural gas (PNG) prices. According to the company, the price of CNG has been reduced by up to 8.13/kg and the price of PNG has been reduced by up to 5.06/scm. The changes will take effect on April 8, 2023.

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Additionally, the gas distribution company has also announced a reduction in PNG prices for its industrial and commercial consumers by Rs 3.0/scm its Geographical Areas (GAs).

Hailing the Indian government’s gas price formula, Adani Total Gas said in a statement that it is ‘enhancing the affordability of PNG and CNG with a saving of over 40 percent for CNG consumers as compared to petrol prices and around 15 percent for home PNG consumers as compared to LPG prices.’

Prior to this, Mahanagar Gas Limited (MGL) was the first city gas distributor that announced a cut in CNG price by Rs 8 per kilogram to Rs 79 per kilogram and PNG price by Rs 5/scm to Rs 49/scm on April 7.

On Thursday, the Cabinet took the Kirit Parikh panel recommendations and revised the gas pricing formula capping the price of domestically produced CNG and piped cooking gas at 10 per cent of international crude prices.

Also Read: Government defends gas price cap; says city gas distributors need to share their 'super-high profits'

In a press briefing, the Information and Broadcast Minister Anurag Thakur said that last year gas producers got $1.79/mmBtu as prices had crashed but now, ONGC, OIL etc. have now been assured a minimum $4/mmbtu rate.