The allocation of cheaper Administered Price Mechanism (APM) gas to city gas distribution (CGD) companies would be further reduced, effective April 16, senior company officials aware of the matter told Moneycontrol.

The city gas distribution companies including Indraprastha Gas Limited (IGL) and Mahanagar Gas Limited (MGL) will have to review prices of Compressed Natural Gas (CNG) used by vehicles and domestic Piped Natural Gas (PNG), owing to allocation cuts in cheaper APM gas, the sources added.

The APM gas allocation for the state-run IGL would come down to 40 percent for CNG from the current 51 percent, the source told Moneycontrol on condition of anonymity, as an official notification is yet to be released.

“We are worried about the instability in policy (for APM allocation). However, we have been told that APM gas would be replaced by new-well gas,” the aforementioned source said.