Home Business Govt More Than Doubles Natural Gas Price, CNG Rates May Go Up

Govt More Than Doubles Natural Gas Price, CNG Rates May Go Up

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New Delhi: The federal government has greater than doubled the value of domestically produced pure fuel amid an increase in gas costs globally. The brand new worth will probably be relevant from April 1 to September 30, 2022.

In line with the notification issued on Thursday by the Petroleum Planning and Evaluation Cell (PPAC) underneath the Petroleum Ministry, the value of fuel produced from the common fields of public sector ONGC and Oil India is $ 2.90 per million British thermal unit (mmBtu). Unit(s) has been elevated to $6.10 per million mmBtu.

For fields situated in troublesome areas equivalent to deepwater areas, the value has been elevated to $9.92 per unit from $6.13 per unit to this point. The brand new home pure fuel worth introduced for April to September 2022 is the best since 2014.

After the rise within the worth of pure fuel, the costs of CNG and PNG within the nation could enhance additional. It’s because each these fuels are constituted of pure fuel. Pure fuel is used for energy era, making fertilizers, CNG and home cooking for cooking.

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With the rise within the worth of pure fuel, the price of energy era will enhance, therefore it should enhance the electrical energy charges. Nevertheless, that is unlikely to have a lot affect on the shoppers as little or no electrical energy is being generated from pure fuel at current. However fertilizer may be costly.

Prashant Vasisht, Vice President and Co-Head, Company Scores, ICRA Ltd, mentioned: “The home fuel worth enhance was pushed by the numerous run up within the costs of fuel at world fuel hubs. The rise in fuel costs gives aid to Indian upstream producers as at earlier costs, fuel manufacturing was a loss-making proposition for many fields for the Indian upstream producers.”

Pure fuel costs change each 6 months. The federal government had raised the value of pure fuel by 62 per cent to $2.90 mmbtu for the October 2021-March 2022 half. For the April-September 2021 half, the value was $1.79 per mmBtu.

(With PTI inputs)

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