Adani Total Gas to Receive 20% Boost in APM Gas Supply Starting January 16

Adani Total Gas Ltd. announced on January 9, 2025, that it will see a 20% increase in its allocation of administered price mechanism (APM) gas. The change, confirmed by GAIL (India) Ltd., will take effect from January 16, 2025. According to the company, this increase is expected to help stabilise retail gas prices for consumers.

A Relief After Earlier Cuts

The announcement comes after APM gas supplies to city gas distributors were slashed by 40% in October and November 2024 due to limited output from fields like Mumbai High and Bassein. The cuts had forced retailers to turn to costlier alternatives, leading to a ₹2-3 per kg rise in CNG prices. This hike made CNG less competitive compared to other fuels like diesel.

Government Steps In to Balance Supply

To address the supply crunch, the Ministry of Petroleum and Natural Gas reallocated low cost gas from LPG production to city gas retailers in an order dated December 31, 2024. Companies like Adani Total Gas and Indraprastha Gas Ltd. were given priority to guarantee smoother CNG and piped gas distribution.

Business Numbers

Despite all this, Adani Total Gas posted interesting results in the second quarter of FY25. The company reported an 8% rise in net profit, reaching ₹186 crore, compared to ₹172 crore in the previous quarter. Its total sales volume grew by 15% year-on-year to 242 million metric standard cubic meters, driven by a 19% jump in CNG sales and a 7% rise in piped gas (PNG) sales.

Market Reaction

Shares of Adani Total Gas ended lower at ₹681.95 on January 9, shedding 3.16%,  and as of 12:09 PM today, the stock is trading at ₹681.35, down by 0.12% today, showing a decline of 23.29%  in the past six months and a drop of 36.26% over the past year.

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