Domestic natural gas prices doubled; CNG, cooking gas to get costlier

Domestic natural gas prices will be more than doubled to USD 6.10 per million British thermal unit (mmBtu) effective from 1 April, 2022, from the current USD 2.90 per mmBtu, Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum and Natural Gas announced on Thursday.

The new price will be effective for the first six months of the financial year 2022-23. “In accordance with Para 8 of the ‘New Domestic Natural Gas Pricing Guidelines, 2014’ issued vide Ministry of Petroleum and Natural Gas, Govt of India, F.No. O-22-13/27/2012-ONG-D-V dated 25-10-1014 the price of domestic natural gas for the period 1st April 2022 to 30th September 2022 is $6.10/MMBtu on the Gross Caloric Value (GCV) basis,” Petroleum Planning and Analysis Cell said in a release.

This will result in an increase in the prices of piped cooking gas, CNG and other energy product. Apart from CNG and piped cooking gas, natural gas is also used to produce electricity and fertilisers. The prices of the natural gas from deep fields will be increased to USD 9.92 per MMBtu for the April-September 2022 period from the existing price of USD 6.13 per mmBtu.

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