Andhra Pradesh Slashes VAT on Natural Gas, CNG Prices Set to Plummet
Vijayawada: 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 is estimated to reduce from INR 93 per kg 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 YSJagan Mohan Reddy, 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 PNG & CNG in Anantapur region. The company operates over 14 CNG stations and supplies PNG to over 800+ households in the region.
