Mahanagar Gas Secures 26% Increase in Domestic Gas Supply from GAIL

Mahanagar Gas Limited (MGL) has announced a 26% increase in its domestic gas allocation at APM (Administered Pricing Mechanism) rates, effective January 16, 2025. According to a regulatory filing, the allocation for compressed natural gas (CNG) will rise from 37% to 51%, following confirmation from GAIL (India) Limited, the country’s nodal agency for domestic gas distribution.

The Mumbai-based city gas distributor expects this increased allocation to significantly enhance its profitability. The move comes as city gas distribution companies have been pushing for higher domestic gas supplies to stabilize operations and meet growing demand.

MGL, a key player in the sector, supplies compressed natural gas (CNG) for vehicles and piped natural gas (PNG) for domestic, commercial, and industrial use. This development marks a critical step in strengthening its ability to serve its operational areas efficiently while addressing the rising demand for cleaner energy alternatives.

HBL