India’s leading city gas distribution company Adani Total Gas Limited has made a major reduction in the price of surplus natural gas, giving relief to industrial customers. The company has reduced the rate of additional gas from ₹ 119.90 per standard cubic meter (SCM) to ₹ 82.95 per SCM. This new rate has come into effect from 6 am on March 16.
The company says that this decision has been taken due to the fall in upstream gas prices so that customers can benefit from it. Besides, this step has also been taken to maintain balanced supply of gas.
Relief to industry: Excess gas becomes cheaper
This decision is being considered a great relief for industrial customers. Earlier, if the industry used gas more than its fixed quota, it had to pay ₹ 119 per SCM.
Now this additional gas will be available for only ₹ 82.95 per SCM. That means there will be a direct saving of about ₹37 per SCM. This is expected to reduce the costs of small and big factories.
Impact of Middle East crisis on gas supply
In fact, recently the gas supply was affected due to the ongoing tension in the Middle East. especially Strait of Hormuz The movement of ships passing through was affected, causing problems in the incoming LNG supply to India.
For this reason, the company had earlier advised many industrial and commercial customers to use only 40% of their fixed gas quota. For consumption more than this, higher price had to be paid.
No change in prices of CNG and domestic PNG
The company has made it clear that this decision will not affect the common people. Adani Total Gas Limited has not increased the prices of CNG and Domestic Piped Gas (PNG).
The company says that despite the crisis, it is trying to provide relief to the common consumers and currently the prices for domestic customers have been kept stable.
What is the complete mathematics of gas supply?
According to the company, about 70% of the gas comes from domestic sources, which is delivered to CNG vehicles and homes. The remaining 30% of the gas comes through imported LNG and is mainly supplied to the industry and commercial sector.
In view of the current situation, the government has given priority to CNG and domestic gas supply. At the same time, arrangements have been made keeping in mind the cost of LNG for the industry.
Emphasis on protecting the interests of customers
The company says that despite the challenges related to gas supply, it is trying to deliver gas to all customers. Besides, special attention is also being paid to protecting the interests of consumers.
The new prices will definitely provide some relief to the industrial sector and it is expected that this will also lead to some reduction in the cost of production.
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