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 gasoline amid an increase in gasoline costs globally. The brand new worth will probably be relevant from April 1 to September 30, 2022.

Based on the notification issued on Thursday by the Petroleum Planning and Evaluation Cell (PPAC) below the Petroleum Ministry, the value 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 troublesome areas corresponding to deepwater areas, the value has been elevated to $9.92 per unit from $6.13 per unit to date. The brand new home pure gasoline worth introduced for April to September 2022 is the best since 2014.

After the rise within the worth of pure gasoline, the costs of CNG and PNG within the nation might enhance additional. It’s because each these fuels are produced from pure gasoline. Pure gasoline is used for energy era, 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 worth of pure gasoline, the price of energy era will enhance, therefore it’ll enhance the electrical energy charges. Nevertheless, that is unlikely to have a lot influence on the shoppers as little or no electrical energy is being generated from pure gasoline at current. However fertilizer could be costly.

Prashant Vasisht, Vice President and Co-Head, Company Rankings, ICRA Ltd, mentioned: “The home gasoline worth enhance was pushed by the numerous run up within the costs of gasoline at international gasoline hubs. The rise in gasoline costs gives reduction 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 value 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 value was $1.79 per mmBtu.

(With PTI inputs)

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