This is important news for you – the prices of CNG and PNG may increase in October, by what percentage the government will increase their prices, know…
CNG-PNG Price: Next month, in October, the government may increase the prices of CNG and pipeline LPG, PNG. According to a report by ICICI Securities, the prices of CNG and pipeline-distributed LPG in big cities like Delhi and Mumbai may increase by 10-11 per cent next month, as the gas price fixed by the government will increase by about 76 per cent. The percentage may increase.Also Read – CNG / PNG Price Hike: After petrol-diesel, now CNG rates increased in Delhi-NCR, know how much IGL increased prices
The government, based on rates issued in gas-surplus countries, rates natural gas produced by firms such as state-owned Oil and Natural Gas Corp (ONGC) from fields assigned to them on a nomination basis every six months. does. The next review by the government in this regard is due on October 1.
The brokerage house said the price, called the APM or administered rate, will be USD 3.15 per million British thermal units (MMBtu) for the period October 1, 2021 to March 31, 2022, from the current $1.79. Gas rates from deep water fields such as Reliance Industries Ltd’s KG-D6 and BP Plc will increase to $7.4 per mmBtu next month.
Natural gas is the raw material that is converted into Compressed Natural Gas (CNG) for use in automobiles as fuel or in domestic cooking gas or pipeline domestic gas distribution for cooking purposes.
Thus, the expected jump in APM gas prices will present a challenge for City Gas Distribution (CGD), which will increase their gas cost for CNG and residential piped natural gas. The increase in APM gas prices will mean a steep hike in prices by IGL (which retails CNG in the national capital and adjoining cities) and MGL (which retails CNG in Mumbai) over the next one year. can be done.
ICICI Securities has said in a report that city gas distributors (CGDs) will have to increase their prices by 10-11 per cent in October.
Let us tell you that as per the trend in the international markets, the price of APM gas is likely to be US$ 5.93 per mmBtu in April 2022 to September 2022 and US$ 7.65 during October 2022 to March 2023, which means that CNG in April 2022 And piped natural gas prices will increase by 22-23 per cent and by 11-12 per cent in October 2022.