The new pricing method will be implemented from Saturday and after this decision, CNG prices in Delhi are expected to come down from Rs 79.56 per kg to Rs 73.59 per kg.
Cng And Png Price Revised
A day after making changes in the domestic gas pricing guidelines, the Union Cabinet on Thursday imposed a cap or ceiling price that could help bring down CNG and piped cooking gas (PNG) prices by up to 10 per cent. This move may bring some relief to the consumers as the rates of both CNG and PNG have increased by 80 per cent in the last few months after a sudden spurt in the international market.
What was the change in pricing method?
Earlier, the price of APM gas was fixed on the benchmark rates of gas in surplus countries like USA, Canada and Russia. Now the cabinet has decided to link the prices of APM with the price of imported crude oil. The price of APM will be 10 percent of the price of crude oil basket imported by India. However, the rate is capped at 6.5 donner per million British thermal unit, with a minimum price of $4 per million British thermal unit.
The #CCEAchaired by the Honble @PMOIndia Sh. @narendramodiapproves revised domestic #naturalgas pricing guidelines. The reforms will lead to significant decrease in #PNG , #CNG prices for households & transport sector. Detailed press release here https://t.co/jhZXr3nV9I pic.twitter.com/vSMUdKH4Jh
— Ministry of Petroleum and Natural Gas (@PetroleumMin) April 6, 2023
Currently, the crude oil Indian basket price is $85 per barrel, so the ceiling is helping to reduce the prices from $8.5 (10% of crude oil) to $6.5 and will lead to an overall reduction in domestic PNG and CNG prices. . The minister further informed that these cap and floor prices will remain the same for two years and will increase by $0.25 per mmBtu every year thereafter.
CNG, PNG to become cheaper by up to 10%
In Delhi, both CNG & PNG are expected to become cheaper by Rs 6
In Mumbai CNG will be cheaper by Rs 8 and PNG by Rs 5 per unitNow gas price will be revised every month, earlier it was revised every 6 months pic.twitter.com/IVNgZcBHHO
— Manish N. Koparkar (@ManishKoparkar) April 6, 2023
How much will be the price of CNG and PNG
The new pricing method will be implemented from Saturday (April 8) and after this decision, CNG prices in Delhi are expected to come down from Rs 79.56 per kg to Rs 73.59 per kg, while in Mumbai CNG will cost Rs 87 to Rs 79 per kg. Kilogram is expected to be. Piped Natural Gas (PNG) prices are also expected to come down with the new indexation method and are expected to be cut to Rs 47.59 per thousand cubic meter from Rs 53.59 in Delhi, while consumers in Mumbai will pay Rs 49 per thousand cubic meter instead of Rs 54. Will have to pay Rs.
Read this also:- Elon Musk did not like Dogecoin’s ‘dog’, spent 1.30 lakh crores in four days
Why were the changes necessary?
Last year, the government had constituted a committee under the chairmanship of Kirit Parikh to examine gas prices and decide on a pricing formula keeping in mind the interests of both local consumers and producers. The aim of the government is to convert to a gas based economy. The committee recommended a price cap for current production from legacy or old fields, which account for about two-thirds of the country’s total gas production and are currently regulated under the APM. The pricing formula for difficult areas was not revised.
Read this also:- Big news about NPS, the panel will decide the future of the new pension scheme, there will be changes
Source: www.tv9hindi.com
: Language Inputs