Government has actually increased prices of natural gasThe government on Thursday treked by 62 per cent, the rate of gas that is used in homes for cooking and is become CNG for use as fuel in automobiles.The increase in gas rates is likely to lead to a 10-11 per cent rise in CNG and piped cooking gas rates in cities such as Delhi and Mumbai, industry sources said.It will likewise cause a rise in cost of power generation, but consumers may not feel any major pinch as the share of power produced from gas is really low.This is the first boost in rates given that April 2019 and begins back of firming benchmark worldwide rates but does not reflect the spurt in spot or current cost of melted gas (LNG) witnessed during the last couple of weeks.The Petroleum Ministry's Petroleum Preparation and Analysis Cell (PPAC) stated the rates spent for gas produced from fields given to state-owned Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) will be $2.90 per million British thermal system (mmBtu) for the six-month duration starting October 1, 2021.
Simultaneously, the rate for gas produced from challenging fields such as deep sea, which is based upon a various formula, was treked to $6.13 per mmBtu from the present $3.62 per mmBtu.Gas prices were last raised in April 2019 and have actually because just fallen due to a drop in global benchmark rates.Natural gas price is set every 6 months - on April 1 and October 1 - each year based on rates widespread in surplus nations such as the United States, Canada and Russia in one year with a lag of one quarter.