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 worth of domestically produced pure gasoline amid an increase in gas costs globally. The brand new value will likely be relevant from April 1 to September 30, 2022.

In accordance with the notification issued on Thursday by the Petroleum Planning and Evaluation Cell (PPAC) beneath the Petroleum Ministry, the worth of gasoline 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 positioned in tough areas comparable to deepwater areas, the worth has been elevated to $9.92 per unit from $6.13 per unit up to now. The brand new home pure gasoline value introduced for April to September 2022 is the best since 2014.

After the rise within the value of pure gasoline, the costs of CNG and PNG within the nation could improve additional. It is because each these fuels are constituted of pure gasoline. Pure gasoline is used for energy technology, making fertilizers, CNG and home cooking for cooking.

ALSO READ: Core Sector Output Rises To 5.8 Per Cent In February 2022, Says Govt Data

With the rise within the value of pure gasoline, the price of energy technology will improve, therefore it’s going to improve the electrical energy charges. Nonetheless, that is unlikely to have a lot impression on the shoppers as little or no electrical energy is being generated from pure gasoline at current. However fertilizer might be costly.

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

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

(With PTI inputs)

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