CNG-PNG Price: The price of gas will increase from April 1, know what the government is doing to give relief to the people? – gas prices to rise from 1st april cabinet to consider price caps

CNG Price Hike: CNG may become expensive again, know the reason?

How much will the rate increase

According to the current formula, gas prices from old fields could rise to $10.7 per mmBtu, said two sources with knowledge of the matter. There will be a slight change in the price of difficult area gas. After the last revision in gas prices, the prices of CNG and PNG have gone up by up to 70 per cent. If the rates are revised from April 1, then it will increase further. Sources said the government had last year constituted a committee under the chairmanship of Kirit Parikh on revision of gas prices to balance both local consumer and producer interests as well as further the objective of the country becoming a gas-based economy. .

In its recommendations, the committee has asked old fields to change the price of gas to 10 percent of the current Brent crude oil price for a fixed period. Till now this was done on the basis of prices of gas surplus countries. This, however, would be subject to a floor price of $4 per unit and a ceiling of $6.50 per mmBtu, sources said. The current Brent crude oil price is $75 per barrel. In this case, the gas price should be $7.5 per mmBtu, but due to the cap, the fuel price will be only $6.5. The committee has suggested no change in the formula for difficult areas.