The APM gas contribute to 90-95% of input gas for CGD players ( It include Domestic Household + CNG & exclude Industrial & commercial)
It’s domestically produced gas.
APM gas prices calculated based on last quarter gas prices in USA, Canada, Europe & Rusia and due to geo-political tension the prices on above country is continuously increasing hence APM gas price has also increased and trend is as below-
On 31/03/22- 2.9$/mmbtu
From 01/04/22- 6.6$/mmbtu
From 01/10/22-8.57$/mmbtu
Around 200% rise in 6 month.
CGD players also increased the gas prices to pass on the input hike and the gap between CNG & Petrol, Diesel is at historical low which consequently dropping the conversion rate of vehicle.
The government has set a target to increase the share of natural gas in the country’s energy mix to 15 % by 2030 from the current around 6.3%.
To achieve it, few days back Government had formed comittee under Kirit Parikh to look after APM gas pricing mechanism and they come with following Recommendations:
APM will have a floor procs of $4/mmBtu and a cap of $6.50/mmBtu. The cap will rise by $0.50 every year and deregulation of APM gas pricing by January 2027.
If it implemented APM gas prices will be reduced and consequently CNG prices will be reduced.
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