If the price of CNG-PNG will decrease then what will happen to LPG? Know what is the government’s formula
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New Delhi : There is good news for the consumers troubled by the prices of LPG (PNG) supplied through pipelines in the homes of the country. To reduce its prices, the Modi government at the center has come into action, it seems. With the kind of steps being taken by the government regarding the prices of LPG gas, it seems that in the coming days crores of consumers using LPG in the country can get relief. In particular, a tweet made by Prime Minister Narendra Modi on Friday is considered, indicating that in the coming days, consumers can get relief from the rising prices of cooking gas. It is a matter of fact that the formula approved by the Union Cabinet to reduce the price of cooking gas will benefit the CNG-PNG consumers, but what will happen to the crores of LPG consumers? Will they benefit from this formula of the government? Come, let’s know the government’s formula and then know who will benefit from it?
Government will issue guidelines for pricing
Prime Minister Narendra Modi on Friday said that the approval of the revised domestic gas pricing guidelines by the Union Cabinet will bring several benefits to consumers and is a positive step for the development of the sector, according to a report in news agency Bhasha. Taking an important decision, the Union Cabinet on Wednesday approved the revised domestic gas pricing guidelines. Under the new guidelines, now the price of natural gas will be 10 per cent of the monthly average of Indian crude oil price.
CNG-PNG prices will decrease by 10 percent
Let us tell that the Union Cabinet on Thursday approved the new formula for fixing the price of natural gas. Along with this, a ceiling has also been fixed on the prices of CNG and pipe-supplied LPG, which will reduce their prices by up to 10 percent. Information and Broadcasting Minister Anurag Thakur gave this information after the cabinet meeting. He informed that the cabinet has approved the base price of $4 per mmbtu for APM gas and has approved the ceiling price of $6.5 per mmbtu.
The price of gas will be decided by the price of crude oil
He informed that natural gas produced from conventional or old fields, known as APM gas, will now be linked to crude oil prices like surplus countries like the US, Canada and Russia. Earlier their pricing was done on the basis of gas prices. After this decision, from April 1, the price of APM gas will be 10 percent of the price of crude oil in the Indian basket. However, this price will not exceed $ 6.5 per million British thermal units (MMBtu). The current gas price is $8.57 per mmbtu.
Price will be fixed every month
He told that the gas prices will be fixed every month, whereas till now they were reviewed twice a year. He said the prices of piped cooking gas (PNG) would be cut by up to 10 per cent, while CNG would see a smaller reduction. PNG and CNG rates have increased by 80 per cent in a year till August 2022. Their prices are fixed on the basis of international energy prices.
how will the price be decided
After this decision of the government, the price of CNG in Delhi will be reduced from Rs 79.56 per kg to Rs 73.59 per kg and PNG from Rs 53.59 per thousand cubic meter to Rs 47.59 per thousand cubic meter. In Mumbai, CNG will cost Rs 79 per kg instead of Rs 87 and PNG will cost Rs 49 per thousand cubic meter instead of Rs 54. The price of crude oil in the Indian basket is currently US $ 85 per barrel and 10 percent of it is US $ 8.5. However, due to the price cap, ONGC and Oil India Limited will get only $6.5 per mmBtu price for APM gas.
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