New Delhi: There is news of relief for CNG-PNG holders across the country including Surat. Adani Total Gas Limited (ATGL), a subsidiary of GAIL India’s Mahanagar Gas Limited, has increased CNG prices by Rs. 8.13 and in PNG price Rs. 5.06 per cubic centimeter has been reduced. According to information, the new prices are effective from 12 midnight on April 7. ATGL’s decision comes a day after the Union Cabinet implemented a new formula for domestic gas prices. Now CNG in Delhi is Rs 73.59 per kg and PNG is Rs 47.59 per unit. At the same time, CNG is selling at Rs 79 per kg and PNG at Rs 49 per unit in Mumbai. More than 1 crore consumers will benefit from PNG price reduction.
The government says that the new formula will reduce the prices of CNG and PNG by up to 10 percent. Union Minister Anurag Thakur on Thursday said that domestic gas prices are now linked to imported crude instead of international hub gas. Now the price of domestic gas will be 10 percent of the price of the Indian crude basket. Not only this, now the price of CNG and PNG will be fixed every month. Whereas, prices were fixed twice in the first year i.e. every 6 months.
Gujarat Gas Company reduced the price of CNG by Rs 6.26 and domestic gas by Rs 4.
New price of CNG gas per kg Rs 72.26 PNG Domestic cooking gas price reduced by Rs 4 per standard cubic meter to Rs 49 per SQM. Adani Total Gas also reduced CNG gas prices by Rs 8.13 to Rs 73.29 per new kg, while domestic PNG gas prices were reduced by Rs 5.06. Both types of gas prices have come down. The new price is effective from 12 pm tonight. 5.56 lakh domestic consumers of Gujarat Gas including Surat and 2.75 lakh CNG vehicle users of South Gujarat will get mild relief in the crushing inflation. Let us tell you that Adani Gas network is in Mahuwa Taluk of Surat district.
The cost of floor and ceiling is fixed
Anurag Thakur said in a press conference that the floor and ceiling price of domestic gas prices are fixed for two years. After this it will be increased by $0.25. Currently the price of Indian crude basket is $85 per barrel. 10 percent of this to $8.5 per barrel. But the government has fixed its ceiling price at $6.5. This decision of the government will reduce the price of CNG and PNG across the country.
Aiming to reach 15% share of PNG
Anurag Thakur informed that the government has set a target of increasing the share of natural gas in India’s primary energy mix from the current 6.5% to 15% by 2030. These reforms will help increase the consumption of natural gas and contribute to reducing emissions and achieving the goal of net zero.
That is why the new formula was implemented
Until now, the price of domestic natural gas was determined based on the price of four major gas trading hubs in the world – Henry Hub, Albana, National Balancing Point (UK) and Russian gas. To determine the prices, under the old formula, an average of the prices of the four gas trading hubs for the last one year is taken and then applied at three-month intervals. Prices fluctuated rapidly in the international market and this had an impact on gas prices. Now, under the new formula, the price of the Indian crude basket for the past one month will be taken as the price base for domestic natural gas.