LPG Gas Price: A big decision has been taken by the government to reduce the rising gas prices across the country. Now government oil companies are going to introduce new gas pricing system across the country, which will give relief to the general public. Along with this, there will be a fall in the prices of gas. The country’s new gas pricing system will reduce the income of gas companies like ONGC (ONGC) and Oil India Limited (OIL).
S&P ratings gave information
S&P Ratings has given information about this on Friday. However, the new norms will not affect the prices of gas produced from difficult fields. Companies like Reliance Industries Limited operate in such sectors.
The government had announced on April 6,the government had announced new guidelines on April 6, 2023. Under this, the government will fix the prices of domestically produced gas on a monthly basis. This rate will be 10 percent of the Indian crude basket (average price of crude oil imported by India) in the previous month.
Earlier, the review used to happen once in 6 months.
The government also fixed a lower limit of US$ 4 per million British Thermal Unit (unit) and an upper limit of $ 6.5 per unit for the gas price. “We expect the new gas pricing norms to result in more rapid price revisions,” said Shruti Jatakia, credit analyst at S&P Global Ratings. Earlier the prices were reviewed once in six months.
Rating company issued statement
S&P said in a statement that the lower price range means that ONGC will be able to get a price of at least $ 4 per unit on its gas production. Even if the international natural gas prices are historically low. Similarly, an upper limit on prices will limit earnings growth for ONGC. Especially this will be seen amidst the current increased prices.
