Gas Price Update: A big decision has been taken by the Central Government regarding the gas prices, which will have a direct impact on the pocket of the general public. The government has told today that under the new policy, the prices of gas will now be fixed.
The government on Friday fixed the price of natural gas at $7.92 per mmBtu for the rest of April under the new pricing formula. However, rates for consumers have been capped at $6.5 per mmBtu.
Oil Ministry gave information
According to information received from the Ministry of Oil, the Petroleum Planning and Analysis Cell said in an order that the price of natural gas for April 8 to April 30 will be US $ 7.92 per million British thermal units. This price has been fixed on the basis of 10 percent of the average cost of imported crude oil.
Rates fixed for consumers
The Union Cabinet, however, changed the pricing formula and capped the rates for consumers at $6.5 per MMBtu. “The price for gas produced by ONGC/OIL from their old fields shall be subject to a ceiling of $6.5 per mmBtu,” the order said.
How much will the prices go down?
Let us tell you that after this decision, the price of CNG in Delhi will be reduced from Rs 79.56 per kg to Rs 73.59 per kg and PNG from Rs 53.59 per thousand cubic meter to Rs 47.59 per thousand cubic meter. In Mumbai, CNG will cost Rs 79 per kg instead of Rs 87 and PNG will cost Rs 49 per thousand cubic meter instead of Rs 54.
Review happens 2 times
PPAC said in the order that from April 1 to April 7, the price of APM gas will be $ 9.16 per mmbtu. He told that the prices will be fixed every month, while till now they were reviewed twice a year. The notification said, ‘APM prices will be declared on a monthly basis by the Petroleum Planning and Analysis Cell on the last day of the month.’ The government will monitor prices to ensure that the benefit of reduction in CNG and PNG prices is passed on to the consumers.
