look news india
City gas companies like Indraprastha Gas Ltd and Adani Total Gas Ltd are considering increasing CNG prices after the second cut in supply of the cheaper gas in a month. However, government officials have said retail companies will have to provide cost information to justify the increase.
The government has reduced the supply of cheap natural gas from the old sector to city gas vendors by 20 percent from November 16. Earlier on October 16, it was reduced by 21 percent.
Urban gas retailers IGL (retailer of CNG in the national capital and surrounding cities), Mahanagar Gas Ltd (retailer in Mumbai), Adani Total Gas Ltd (Gujarat and other locations) in their disclosures have said there has been a decline in profitability due to supply cuts. Have expressed concern about. The stock market and prices have indicated an increase.
However, this concern of the companies has no effect on the officials of the Ministry of Petroleum and Natural Gas. They believe that the retailer operates on high margins and can easily afford the additional costs.
A senior official said that as far as IGL is concerned, in the last financial year 2023-24, it earned a net profit of Rs 1,748 crore on a revenue of about Rs 16,000 crore. This is 11 percent margin.
MGL made a profit of about Rs 1300 crore on revenue of Rs 7000 crore. Which retail company makes so much profit?
The official said that the government is not against the companies earning profits but if it wants cheaper gas then it will have to provide details of CNG cost.