Natural gas prices cut for the first time in two years, may affect CNG
Gas Price: There has been no change in prices since the implementation of the formula. Now the government has decided to cut it by 0.25 US dollars annually.
The government has reduced the natural gas price for the first time after a period of two years. This natural gas is used to produce CNG for cars and cooking gas for homes. The government has lowered the natural gas price to US $ 6.41 from US $ 6.75 per mmBtu. This notification has been given by the Petroleum Planning and Analysis Cell.
Earlier, the government implemented a new formula for fixing natural gas prices in April 2023. Under this formula, an expert committee suggested that 10 percent of the average crude oil import price every month, which was fixed at a minimum of $ 4 and a maximum of $ 6.5 per MMBTU, be used to fix the price of gas produced from legacy fields, also known as APM gas, every month. There has been no change in the prices since the implementation of this formula. Now the government has decided to reduce it by 0.25 US dollars annually.
The government's decision can provide great relief to gas retailers in cities like Indraprastha Gas Limited, Mahanagar Gas Limited and Adani Total Gas. These companies are already under pressure due to the rising situation. Now these companies are expected to get relief due to the reduction in prices. This decision of the government can also affect the retail prices of CNG.
