Very Detailed explanation on Reduction of qty under APM. In 2 years time, APM qty would be Zero.
Also allow competition to get better pricing. Interesting.
The central government’s recent decision to reduce gas allocation to city gas distribution companies under the administered price mechanism follows a decline in overall gas volumes, said Gajendra Singh, member of the Petroleum and Natural Gas Regulatory Board.
Over the weekend, the government had reduced APM gas allocation to the city gas distributors by another 20%, marking the second straight month of reduction in gas allocation.
Talking to NDTV Profit, Singh explained the reason, even though the Centre’s policy for gas distribution prioritises allocation of APM gas to CGD companies.
He said that the APM gas supplied to CGDs was being produced in the Mumbai High and its discovery was made in 1986 or 1987. And this asset has “already reached the phase where a decline has started”. When Mumbai High does not have enough volume, “reduction in allocation will need to be applied”.
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