Mahanagar Gas Ltd shares in focus as company reduces APM by 18 pc, effective from 16 April, 2025
City Gas Distributor, Mahanagar Gas Ltd has announced through exchanges that the company has reduced the allocated APM by around 18 percent. This will come into effect from 16 April,2025.
New Delhi: City Gas Distributor, Mahanagar Gas Ltd has announced through exchanges that the company has reduced the allocated APM by around 18 percent. This will come into effect from 16 April,2025.
Meanwhile, the Reduction of APM volume has been replaced with New Well/Well Intervention gas (NWG).
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The filing stated that 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.
With this, allocation of APM to the Company has been reduced by ~18%, effective April 16, 2025, compared to previous fortnight APM allocation.
This will have an adverse impact on the profitability, however, the Company is in the process of exploring all measures to mitigate the impact, it added further.
Shares of MGL were closed at Rs 1,312.40, higher by 2.73 pc at NSE.
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