Expensive cooking gas and wildly rising CNG prices are going to get rid of soon. The government has prepared such a superhit formula, which will bring down the prices of CNG and cooking gas.
According to the news agency PTI, the new formula of the government will reduce the price of LPG Gas Cylinder by Rs 120 and the price of CNG by Rs 8.
Actually, the Modi government has put a cap on the prices of natural gas. This means that natural gas will not be bought at a price higher than the fixed price. Union Information Minister Anurag Thakur says that at present the price of natural gas is not more than 10% of the crude basket imported by India.
Due to this cap, the price of natural gas will come down to $6.5 per million British Thermal Unit (mmBtu). Apart from this, a base price of $4 has also been kept for mmBtu. Presently the price of natural gas is around $8.57 per mmBtu, while the ceiling price will be much less than this.
How will the new formula work
Under the current formula of the government, natural gas will not be bought at a price more than 10 percent of the current crude price in the Indian basket. That is, if the price of crude is $ 85 per barrel now, then the price of gas should not be more than 10 percent of it i.e. $ 8.5. But, the new formula imposes a price cap, which says that natural gas will not be bought at a price higher than $6.5 per mmBtu.
What is the effect of the formula on LPG and CNG
The Union Minister says that after the new price ceiling, the retail prices of LPG and CNG can be reduced by about 10 percent. At present, in some cities, the price of cooking gas ie 14.2 kg LPG gas cylinder is around Rs 1,200, so 10 percent of it will be Rs 120.
That is, in the coming times, cooking gas can be cheaper by up to Rs 120 per cylinder. Similarly, if the price of CNG is currently Rs 80 per kg in your city, then it can also be reduced by Rs 8.
How cheap will CNG be in which city?
If we examine the new rule of the government, then the price of CNG in Delhi is Rs 79.56 per kg, which will come down to Rs 73.59 per kg. Similarly, the price of PNG ie Piped Natural Gas will also be reduced from Rs 53.59 per thousand cubic meters to Rs 47.59. In Mumbai too, the cost of CNG will come down from Rs 87 per kg to Rs 79 per kg. At the same time, the price of PNG going to the kitchen will be reduced from Rs 54 to Rs 49.
