CNG And PNG: Natural gas prices cut after two years, know how much cheaper CNG and PNG will become?

If you use a CNG vehicle or have a PNG connection in your home, then there is good news for you. The prices of both these gases are going to come down very soon. The government has reduced the price of natural gas after two years. CNG and PNG are made from this gas.

According to news agency PTI, the price of natural gas from fields allocated to ONGC without auction has been reduced from $6.75 per million British thermal units (MMBTU) to $6.41. This reduction has happened for the first time since the government implemented a new formula to fix the price of such gas in April 2023.

How much can the price of PNG and CNG be reduced?

According to experts, there has been a 5 percent reduction in the price of natural gas. But gas distributors are unlikely to pass on the entire reduction to consumers, as they are already grappling with the pressures arising from the increase in input costs. However, CNG and PNG prices can still fall by up to 3 percent. That is, CNG prices are expected to fall by 2 to 3 rupees.

The reduction in the price of natural gas will also provide relief to companies like Indraprastha Gas Limited, Mahanagar Gas Limited, and Adani-Total Gas Limited.

Let us tell you, in April 2023, the Central Government accepted the report of an expert committee, which recommended fixing the price of gas from legacy fields at 10 percent of the monthly average import price of crude oil every month. It had a minimum cap of $ 4 and a maximum cap of $ 6.5 per MMBtu.

Oil prices have fallen in the international market. The price of Indian crude oil averaged around $ 64 in May. Using this benchmark, the price of natural gas came to $ 6.41 per MMBtu.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.