National/Alive News: Adani Total Gas has increased the price of CNG by ₹2.30 per kg, taking the rate from ₹98.47 to ₹100.77. This is the second price hike in just 13 days. The company had earlier increased CNG prices by ₹4.45 on October 23.
With the latest revision, CNG prices have crossed the ₹100 mark for the first time. The increase is expected to put additional pressure on daily commuters, auto-rickshaw drivers and other consumers who depend on CNG-powered vehicles, particularly during the festive season.
Why Has CNG Become More Expensive?
The company has attributed the price hike to rising gas procurement costs and supply-related challenges. The availability of low-cost domestic natural gas has declined, increasing dependence on expensive alternative sources.
According to the company, the reduced supply of new-well gas and high-pressure, high-temperature (HPHT) gas has affected the availability of domestic gas for CNG production.
International gas prices have also increased significantly. Spot liquefied natural gas (LNG) prices, which were around $10-$12 per MMBtu in February, have reportedly risen to nearly $30 per MMBtu.
Adani Total Gas said it had absorbed a significant portion of the increased costs but had to revise prices to maintain an uninterrupted supply.
Adani Total Gas Reports Higher Profit
Meanwhile, Adani Total Gas reported a profit of ₹173 crore in the second quarter, compared with ₹163 crore in the corresponding period last year, an increase of around 6%.
The company’s revenue also rose 34% to ₹2,109 crore from ₹1,576 crore in the same quarter last year. Higher demand for CNG and piped natural gas (PNG) contributed to the growth.
