PNG & CNG Consumers in Andhra Pradesh to Enjoy Significant Price Reduction The role of gas to recovery

AGP Pratham  |  05 May, 2024

Anantapur / Nellore/ Tirupati, 26th February 2024: In a significant development, City Gas Distribution players and Natural Gas customers in Andhra Pradesh will now have a cause for celebration as the Andhra Pradesh Government has announced a substantial reduction in Value Added Tax (VAT) on natural gas. The VAT rate, previously at 24.5%, has been reduced to 5%, making Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) much more affordable for the existing consumers of AG&P Pratham. This move is set to bring about a positive change in the region, allowing Natural Gas consumers of Transportation, Industrial and Commercial sectors to enjoy the benefits of CNG & PNG. Effective from 1st April 2024, the CNG prices in Andhra Pradesh which earlier costed around INR 93 per kg is now reduced to around INR 79 per kg marking a significant stride towards a gas-based economy. 

Speaking on this development Mr. Abhilesh Gupta, Managing Director & CEO AG&P Pratham, said “I would like to thank Shri YSR Jagan Mohan Reddy, Hon’ble Chief Minister of Andhra Pradesh for his visionary leadership of Andhra Pradesh and for this significant step of reducing VAT on natural gas from 24.5% to 5%. This exemplary step paves the way for the state to chart out a whole new path of sustainable development and herald a new age of natural gas driven industrial growth. Andhra Pradesh is a leading state for industrial development and growth. This initiative in VAT reduction will augur well for attracting business entities to invest more in the state of Andhra Pradesh as this will reduce the cost of manufacturing substantially and make AP-based businesses competitive with manufacturers in other states. 

Starting from 1st April 2024, from AG&P Pratham will pass on the entire benefit of tax reduction to the end users. Beyond the benefit of drop in prices in AP for CNG, this will also enable all commercial, manufacturing, construction, real estate and transport sectors to switch to a reliable, cost-effective and safe energy source of natural gas without any financial inhibitions. This growth will also lead to a significant reduction in pollution. 

AG&P Pratham will work towards bringing significant FDI in Andhra Pradesh in industrial setups through its strong shareholder base for the further development of Natural Gas infrastructure. This investment will not only bring about economic prosperity in the state but also significant employment generation will ensue. We once again thank the progressive approach of the AP State government for this game-changing initiative.”

AG&P Pratham has a robust network and infrastructure to ensure seamless supply of CNG & PNG across Andhra Pradesh. The company operates over 50 + CNG stations in the state.

About AG&P Pratham:

AG&P Pratham is the leading international player in the Indian City Gas Distribution (CGD) industry. AG&P Pratham holds 12 CGD licenses awarded by the Petroleum & Natural Gas Regulatory Board (PNGRB) to exclusively provide natural gas for everyday use in 37 Districts in Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, and Rajasthan. The exclusive rights cover the supply of Piped Natural Gas (PNG) to households, industrial, commercial, non-commercial, and Compressed Natural Gas (CNG) for use in vehicles. These CGD networks will cover 278,000 square kilometres, 17,000 inch-km of pipeline and over 1,500 new CNG stations.

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