Ahmedabad, April 8 City gas distribution players on Saturday announced a reduction in prices for Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) customers across geographies.

In a price revision announced late on Friday night, Adani Total Gas Ltd (ATGL) announced a reduction in the price of CNG by up to Rs 8.13 per kg, and for PNG by up to Rs 5.06 per standard cubic meter (scm) across its geographical areas (GAs).

ATGL also reduced PNG prices by Rs 3 per scm for its industrial and commercial consumers in Ahmedabad, Vadodara, Faridabad, Khurja and Palwal.

The reduction in gas prices will benefit ATGL’s CNG and PNG customers, including 7 lakh domestic PNG users, 4,000 commercial and about 2,000 industrial customers, besides over 3 lakh CNG users across 460 CNG stations in India.

Torrent Group’s CGD arm, Torrent Gas, too, has announced a reduction in CNG and PNG in 34 districts, including Chennai and Jaipur.

Torrent Gas announced a reduction of up to Rs 5 per standard cubic meter (scm) in the price of Domestic PNG, and up to Rs 8.25 per kg in retail CNG in its operational areas effective the evening of April 8.

Also read: Govt keeps price of domestically-produced natural gas on hold

“This will make CNG up to 47 per cent cheaper when compared to petrol, and 31 per cent cheaper when compared to diesel. Similarly, domestic PNG will now be up to 28 per cent cheaper when compared to domestic LPG,” said a statement by the company.

Jinal Mehta, Director, Torrent Gas said, “The revised gas pricing guidelines will help reduce volatility in CNG and domestic PNG prices in the country and the long-term roadmap provided under the revised guidelines will encourage large-scale adoption of CNG and domestic PNG across the country.”

The State-run Gujarat Gas Ltd has also revised downwards its prices for CNG and PNG customers from April 8 for markets across Gujarat, Maharashtra, Haryana, Punjab, Rajasthan and Madhya Pradesh as well as in the union territory of Dadra Nagar Haveli.

Centre had announced a new gas pricing mechanism for domestically produced gas following the recommendations of the Kirit Parikh committee that had proposed a floor of $4 per metric million British thermal unit (MMBTU) and cap of $6.5 for natural gas produced by State-run explorers under the old APM fields.

The pricing mechanism is believed to have reduced the cost of CNG and PNG for CGD players.

Also read: PNGRB notifies unified tariffs at ₹73.93/mBtu, effective April 1

“The revised guidelines, which includes the determination of a floor and cap in gas prices, strike a fine balance between the interests of gas producers, user sectors such as the CGD, fertiliser and power sector, and end-consumers,” Torrent Gas statement said.

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