Costs for CNG and piped natural gas (PNG), which have already increased by more than 70% in the past year. Are anticipated to grow with a sharp price hike. Additionally, since April 2019, this is the third time that natural gas prices have increased.
In line with the global firming up of energy prices, natural gas prices rose by 40% on Friday to record highs. Among other uses, natural gas contributes to the production of energy. Additionally, it is transformed into CNG and pumped into residential kitchens for use in cooking.
Similar to this, the price of making fertiliser will increase. A tariff hike is unlikely, though, because fertiliser is subsidised by the government. The Petroleum Planning and Analysis Cell (PPAC) of the Oil Ministry announced in a statement that the price paid for gas produced from oil fields was raised from its previous rate of $6.1 per million British Thermal Units to $8.57 per million BTUs. It’s interesting to note that almost two thirds of the gas generated in India comes from old fields.
Strong rise in the Price of Natural Gas on the Global Market.
India had to pay twice as much for liquefied natural gas earlier this month. After shipments from Russia’s Gazprom subsidiary for India were switched to Europe. Domestic automakers have also lowered their production goals for CNG-powered vehicles as a result of a strong rise in the price of natural gas on the global market and anticipate further increases in local prices in the upcoming round of adjustment.
Likewise, the cost of gas from more recent fields. Including as the deepwater D6 block in the KG basin managed by Reliance Industries Ltd. And its partner bp plc, was increased from $9.92 to $12.6 per mmBtu. These are the highest rates for managed or regulated fields. Such the Bassein field operated by ONGC off the coast of Mumbai, and unregulated regions, like the KG basin.
Every six months, on April 1 and October 1, the government sets the fuel price based on rates that are typical in countries with fuel surpluses like the US, Canada, and Russia in a year with a lag of one quarter. As a result, the price for the period of October 1 to March 31 is based on the average price between July 2021 and June 2022, a period during which global interest rates skyrocketed.