Govt diverts gas from industries to city gas to moderate CNG, piped cooking gas rates
City gas companies will now get only domestic gas, and not imported liquefied natural gas (LNG) that they had been receiving as part of the government’s gas pooling policy for the past three months, according to people familiar with the matter.
In May, the government had directed state-run GAIL NSE -0.73 % to import liquefied natural gas (LNG) to meet the supply shortfall city gas distributors were facing due to limited availability of local gas amid sharply rising demand. GAIL was to charge a uniform blended price for gas from all city gas distributors. The price of local gas today is $6.1 per mmBtu but the blended rate city gas companies currently pay GAIL is $10.5 per mmBtu.
