CNG, PNG rates to jump as gas prices raised 40% to $8.5 per unit
NEW DELHI: CNG and PNG will become costlier and input cost for fertiliser manufacturers will rise sharply as the government on Friday raised the prices of natural gas produced from domestic fields over 40% to record levels, even as a panel of experts is reviewing the pricing formula with a view to moderating consumer rates.
Gas produced from legacy fields given to state-run ONGC and Oil India will cost $8.57 per unit (million British thermal unit) from Saturday, up from $6.1 till the next six-monthly revision till April 2023. Similarly, the price ceiling for gas produced from geographically and technologically challenging fields such as the Andhra offshore fields of Reliance-BP was raised to $12.46 per unit, a jump of over 25% from $9.92.
The sharp increase in the price of domestic gas, the main input for city gas services, will have an impact of about Rs 9.50 to Rs 10 per kg of CNG (compressed natural gas), roughly 13% of the current price of Rs 75.61 per kg in Delhi, industry executives said.
