The allocation of APM gas to Mahanagar Gas Limited has reduced by around 18%, effective November 16, 2024, compared to October 16, 2024, APM allocation. This being a major reduction in allocation, will have an impact on the profitability of the company.

To bridge this shortfall, MGL is exploring options of sourcing gas through domestically produced High Pressure High Temperature (HPHT) gas, New Well/ Well Intervention gas (NWG) from ONGC and benchmark-linked long-term gas contracts, so as to continue to provide gas to its customers with price stability.

As per Policy Guideline dated August 10, 2022, issued by the Ministry of Petroleum and Natural Gas, domestically produced Administrative Price Mechanisms (APM) natural gas is to be allocated to city gas distribution (CGD) companies for priority segments, specifically Domestic PNG and CNG (Transport). The policy states that the supply of domestic gas to CGD entities will be made only up to the quantity available and allocated to GAIL (India) Limited for these segments. In line with this policy, the company was allocated APM natural gas for Domestic PNG and CNG (Transport) based on APM gas availability.