Reliance Gas Price: Reliance gave relief in rising inflation, reduced gas prices by 18 percent, know the price of CNG-PNG
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Reliance Gas Price: Reliance Industries has given a big relief to Indian customers amid the ongoing fluctuations in oil and gas prices in the international market. The company has made a huge reduction in gas prices by about 18 percent. It is being told that in line with the softening of international benchmark gas prices, the price of natural gas produced from difficult fields like Reliance Industries’ deep sea KG-D6 block has been reduced by 18 percent on Sunday. This information has been given in an official notification. However, there has been no change in the price of gas used to make automobile fuel CNG and piped cooking gas PNG. The price of this gas is fixed at 30 percent less than the market rate paid to Reliance. A notification issued by the Petroleum Planning and Analysis Cell (PPAC) of the Petroleum Ministry said that the price of gas from deep sea and high pressure, high temperature (HPTP) fields for a period of six months starting October 1 will be Rs. 12.12. It has been reduced from US dollars to $9.96 per million British thermal units (MMBTU).
The price of natural gas is decided twice a year.
The government decides the prices of locally produced natural gas twice a year. This gas is converted into CNG for use in vehicles and PNG for use in kitchens. Oil and Natural Gas Corporation (ONGC) and Oil India Ltd. (OIL) has two different formulas for payment for gas produced from old fields and gas produced from difficult new fields. Gas rates are decided every year on 1st April and 1st October. On April 1 this year, the formula for monitoring old fields was changed and it was ‘indexed’ at 10 percent of the current Brent crude oil price. However, the price limit for this was set at $6.5 per unit. Rates for old areas are now decided on a monthly basis. The price for September was $8.60 per mmBtu, but due to the cap, producers will get only $6.5 per unit. The price for September was US$9.2 per mmBtu, but due to the cap consumers will continue to pay $6.5 per unit to ONGC and OIL.
Crude oil had reached $92
The average price of Brent crude oil this month has been around $92 per barrel, but the rates will be limited to $6.5. Sources said the hard field gas price continues to be governed by the old formula, which takes a one-year average of international LNG prices and the rates at some global gas hubs at a lag of one quarter. He said there had been a decline in international prices in the reference period of July, 2022 to June, 2023 and hence this would translate into lower prices for difficult sectors. The price of gas from difficult fields was reduced to $12.12 per unit for the six-month period starting April 1, from the earlier record of $12.46. It is noteworthy that India is aiming to become a gas based economy. A target has been set to increase the share of natural gas in India’s energy mix to 15 percent by 2030, which is currently 6.3 percent.
Fuel prices strengthened in global markets due to Russia-Ukraine war
Sources said that the old formula is being used for the price of gas produced from difficult fields. Under this, a one-year average of international LNG prices and rates at some global gas centers is taken with a lag of one quarter. He said that there was a decline in international prices in the reference period from July 2022 to June 2023. That is why prices for gas produced from difficult areas will be lower. For a period of one month starting April 1, the price of gas produced from difficult fields was reduced to US $ 12.12 per unit, which was earlier a record of $ 12.46. Due to the Russia-Ukraine war, fuel prices had strengthened in the global markets. Due to this, the price of gas produced from old fields in the country also increased to a record $8.57 between October 2022 and March 2023. At the same time, the price of gas produced from difficult areas became $ 12.46.
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