Up to 20% of APM gas allocation replaced with costlier new gas: CGDs

While CGDs say profitability will be hit, officials said the move is in line with stated policy positions

State-owned gas major GAIL has slashed the allocation of administered price mechanism (APM) gas by up to 20 per cent, replacing it with equal or more volumes of pricier New Well Gas (NWG), city gas distribution (CGD) firms said.

 

While CGDs said the move will hit their profitability, Petroleum Ministry officials said the move was expected, and was in line with the government’s ongoing move to reduce the share of APM gas.

 

From Wednesday, GAIL has slashed APM gas allocation by 18 per cent and 20 per cent respectively, to Mumbai-based Mahanagar Gas Ltd, and Delhi-based Indraprastha Gas Ltd, while