Adani Total Gas has announced a 13 percent reduction in its gas supply from GAIL (India) starting November 16, 2024, according to reports. This follows an earlier cut of 16 percent in October under the Administered Price Mechanism (APM). The company warned that this reduction would negatively affect its profitability.
In a regulatory filing, Adani Total stated, “This reduction impacts the entire City Gas Distribution (CGD) industry. While discussions with key stakeholders are ongoing, this will have an adverse impact on the company’s profitability.” The company is reviewing the situation and may adjust retail gas prices to minimise the impact while ensuring uninterrupted supply to consumers, according to reports.
The October reduction, effective from October 16, was communicated by GAIL, citing lower APM gas allocations for Compressed Natural Gas (CNG) and Domestic Piped Natural Gas (PNG).
Adani Total had then emphasised the need for industry-wide resolutions to support end consumers and the growth of CNG vehicles in India.
Despite these challenges, Adani Total reported strong financial results for the quarter ending September 30, 2024. The company’s consolidated net profit rose by 7.5 percent year-on-year to Rs 186 crore, while its revenue from operations increased by 12 percent to Rs 1,318 crore.
