The government on Thursday announced a 62 percent increase in the prices of natural gas. Due to this, the possibility of cost of CNG, LPG, fertilizer and electricity has increased. For the first time after 2019, the government has increased the prices of natural gas. In fact, after the increase in benchmark prices in the international market recently, the government has decided to increase domestic prices. Industry sources said that due to the increase in the price of natural gas, the price of CNG and cooking gas in cities like Delhi, Mumbai may increase by 10 to 11 percent.
Natural gas price hiked by 62 percent
The government has now increased the price of natural gas to $2.90 mmbtu (mmbtu- metric million British thermal units) for the October-March half (October 2021 to March 2022). For the April-September 2021 half, this price was $1.79 per mmBtu. The Petroleum Planning and Analysis Cell of the Ministry of Petroleum said that the rate of $2.90 per mmBtu is being given for the gas generated from the oil fields given to ONGC and Indian Oil. This rate will be valid from 1st April 2021. At the same time, a rate of $ 6.13 per mmBtu will be given for the gas produced from the difficult gas field present in the deep sea. At present, a rate of $ 3.62 per mmBtu is being given for the gas being released from here. This is the maximum rate paid to Reliance Industries and its partner company BP for the gas produced from the deep-sea KG-D6 block.
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Electricity and fertilizer prices will also increase
With the increase in the price of natural gas, the cost of electricity generation will increase. This will increase the electricity rates. However, it will not have much effect on the customers because at present very little electricity is being generated from natural gas. Fertilizer can be expensive as it is made from natural gas. Due to the cost of gas, the government will have to spend more on its subsidy.
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