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APM gas price cut likely to aid city gas profitability
June 06, 2025
|Financial Express Chandigarh
The recent reduction in prices of domestic gas is likely to improve profitability of the country's city gas distribution companies, analysts believe.
"If prices (of CNG/PNG) are not revised then profitability will only improve because lately it has been impacted owing to reducing proportion of the APM (Administered Pricing Mechanism) gas," said Prashant Vasisht, senior vice-president and co-group head, Icra.
The government reduced the prices of APM gas for the first time in two years following a decline in the benchmark rates after it introduced a new gas pricing formula for such gas in 2023.
As per the official notification, the price of natural gas from legacy fields allocated to state-owned Oil and Natural Gas Corp has been reduced to $6.41 per million British thermal units (mmBtu) from $6.75 earlier.
هذه القصة من طبعة June 06, 2025 من Financial Express Chandigarh.
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