The central government is sending some natural gas from industries to city gas operators such as Indraprastha Gas Limited in Delhi and Mahanagar Gas Limited in Mumbai to check spiraling CNG and piped cooking gas prices.
The oil ministry in a notification issued on Wednesday amended an earlier order to increase the allocation of domestically produced gas to city gas operators.
like allocation for city gas operators IGL and MGL has increased from 75 lakh standard cubic meters per day to 20.78 mmscmd.
According to the Oil Ministry, the increased allocation will meet 94% of the demand for CNG supply in the country for supply of LPG from automobiles and pipes to households.
Earlier, about 83% of the demand was met and the rest was met through import of LNG by GAIL.
He said city gas operators complained against the mechanism as it meant using high priced imported LNG, which led to repeated hike in CNG and natural gas prices.
Under the previous arrangement, GAIL would average the price of domestically available gas with LNG and supply the fuel at a pooled price. The price for the current month has come down to $10.58 per million British thermal units.
After the revision, the price of gas could come down to $7.5.
GAIL will increase allocation to city gas operators by cutting off supplies from LPG and petrochemical plants.
This month, the price of LPG was increased in domestic kitchens in the national capital and nearby cities. 2.63 per unit.
At present, the price of piped LPG 50.59 per standard cubic meter. In Mumbai, Mahanagar Gas Limited increased the price of CNG by how much? 6 per kg and by PNG 4 one unit.
Domestic production of natural gas is insufficient to meet demand and India imports almost half of its needs in the form of liquefied natural gas (LNG).
While the price of domestically produced natural gas was raised to $6.10 per million British thermal unit for a six-month period beginning 1 April, international LNG rates were set to record high following Russia’s invasion of Ukraine. was shot. The price of LNG in the spot or current market is currently above $30.
GAIL mixes about 2.5-3 million standard cubic meters of LNG per day with the quantity available from domestic sectors to supply city gas operators like IGL and MGL. The deposit rate is fixed every month. For August, the deposit price is $10.52 per mmBtu, up from $8.95 in the previous month.
catch all business News, market news, today’s fresh news events and breaking news Updates on Live Mint. download mint news app To get daily market updates.