Adani Total Gas Ltd (ATGL), a joint venture between the Adani Group and TotalEnergies, has announced a reduction in the prices of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) across several markets. The price cuts, which could be up to ₹4, aim to provide relief to both households and vehicle owners.
The price reduction follows a recent tariff reform implemented by the Petroleum and Natural Gas Regulatory Board (PNGRB). This reform streamlines gas transportation charges and lowers input costs for city gas distributors. The PNGRB's new regulations have consolidated the previous three gas transportation zones into two and apply a uniform Zone-1 tariff of ₹54 per million British thermal units for domestic PNG and CNG transportation throughout the country. The tariff revision by PNGRB is designed to make natural gas transportation simpler, fairer, and more cost-effective for both consumers and the city gas distribution sector.
The extent of the price reduction varies depending on the geographical area. In Gujarat and adjoining regions of Madhya Pradesh and Maharashtra, CNG prices have been reduced by ₹0.50 to ₹1.90 per kg, while domestic PNG prices are down by up to ₹1.10 per standard cubic meter. In Rajasthan, Punjab, Haryana-NCR, northern Madhya Pradesh, and bordering Uttar Pradesh, the CNG price has been reduced by ₹1.40 to ₹2.55 per kg, while domestic PNG is cheaper by ₹1.1. Central and Eastern India have seen even larger reductions, with CNG prices falling by ₹1.81 to ₹4.05 per kg and domestic PNG prices decreasing by up to ₹4.00 per standard cubic meter.
Other gas distribution companies are also following suit. THINK Gas has announced it will reduce CNG prices by up to ₹2.50 per kg and domestic PNG prices by up to ₹5 per standard cubic meter for customers in Madhya Pradesh, Punjab, Himachal Pradesh, Uttar Pradesh, Bihar, and Karnataka. In Andhra Pradesh and Tamil Nadu, THINK Gas will voluntarily reduce domestic PNG prices by up to ₹4 per standard cubic meter, and by ₹2.77 per SCM in Rajasthan, even though these states are not yet connected to the National Gas Grid. Indraprastha Gas Ltd, India's largest city gas retailer, has cut the price of PNG by ₹0.70 per standard cubic meter in Delhi and NCR towns.
In Ahmedabad, specifically, Adani Gas Total has reduced CNG prices by ₹1.21 per kg, bringing the retail price down to ₹81.17 per kg. This reduction follows four consecutive price hikes last year, which had cumulatively increased CNG prices by ₹3.40 per kg.
ATGL believes that the government's step to revise the gas price will act as a growth catalyst and aid in the rapid PNG and CNG conversions, increasing the share of natural gas in India's energy basket from 6.5% to 15% by 2030. The company is among the largest city gas distribution companies in India, supplying CNG and PNG to approximately 7 lakh domestic customers, 4,000 commercial customers, 2,000 industrial customers, and over 3 lakh CNG users across 460 CNG stations.
