apm gas allocation

Adani Total Gas Limited (ATGL) has recently experienced a rise in social share values after a 20% hike in the APM gas allocation. Now this is a really good sign for the Adani Group’s gas business. It will allow the business group to further take its business to new heights. The firm will also find it easier to increase its revenue generation. The controversies of Adani Stock Manipulation will also subside.

ATGL Experiences 20% Hike In The APM Gas Allocation

Adani Total Gas’s share values have been in focus following the company’s announcement of a 20% increase in its administered price mechanism (APM) gas allocation. This is going to be effective from 16th January 2025. The company has recently received this update from the nodal agency (GAIL India Limited). In an exchange filing, Adani Total Gas stated that the company has already been informed by nodal agency GAIL India Limited that the allocation of APM gas has been revised upwards by 20% effective 16th January. This revision in price follows previous reductions in APM gas allocation. This was communicated on 17th October and 15th November 2024.

How Will the Increase in APM Gas Allocation Benefit the Adani Group’s Business?

Adani Total Gas believes that the increase in APM gas allocation is going to impact its business operations positively. It will benefit the company in the long run and will also help stabilise retail prices for the customers. Recently, the government also reduced the allocation of natural gas used for LPG production. It redirected the lower-priced fuel to city gas retailers including Indraprastha Gas and Adani Total Gas. This was done to primarily meet the requirements for piped cooking gas and CNG supplies.

The Reduction in Low Priced Gas Supply

The government had, in October and November, cut supplies of low-priced natural gas coming from various oil fields like the Mumbai High and Bassein Fields in the Bay of Bengal to the city retailers. The supply was cut down by as much as 40% because of the limited output. This subsequently caused the city gas retailers to increase their CNG prices by INR 2-3 per kg. The retailers also gave warnings of further hikes as they turned to higher-priced input fuel. The price increase caused CNG to become less competitive in the market as compared to other alternative fuels like diesel.

In order to address this issue, the Ministry of Petroleum and Natural Gas issued a 31st December order revising gas allocation from the below-ground and under-sea sources. City gas retailers like Indraprastha Gas Limited in the national capital region, Mahanagar Gas in Mumbai, Adani Total Gas in Gujarat, and other regions were also largely affected by this change. However, with the recent rise in APM gas allocation, the Adani Group will be able to carry out its business operations smoothly. It will also be able to ensure that its fuel demands are met. The business group will also be able to put a stopper to the controversies of Adani Stock Manipulation.

Adani’s Gas Business

Adani Total Gas holds the reputation of being one of the largest city gas distribution companies. Currently, the company is expanding its network of CGD infrastructure so that it is able to meet the fuel needs of the nation. The company’s goals are aligned with the country’s goal of bringing energy security and environmental protection. It has also diversified its business into electric vehicle charging, biogas, and liquefied natural gas. Over the years, ATGL has succeeded in touching the lives of millions of people by offering them convenient and safe services. The company has a presence across 52 geographical areas.

ATGL has also been a part of a lot of mergers and acquisitions which are aimed at ensuring that the country’s fuel needs are addressed. Over the years. The company has increased its network. It also offers fuel at lower prices to the customers. The company has also achieved resilience and sustainable growth even during periods of unprecedented challenges like the controversies of Adani Stock Manipulation. It is also driven by its commitment to supply clean fuel to protect the environment. The company already has over 7 lakh residential customers, 460 CNG stations, and 7,500+ km of pipelines distributing gases. It aims to continue to expand its territories and become a global leader in the business sector.

Conclusion

The recent rise in APM gas allocation will allow the Adani Group to carry out its business operations smoothly. The global business group will also be able to build itself the reputation of being one of the most reliable gas suppliers in the country.

By Anurag Rathod

Anurag Rathod is an Editor of Appclonescript.com, who is passionate for app-based startup solutions and on-demand business ideas. He believes in spreading tech trends. He is an avid reader and loves thinking out of the box to promote new technologies.