Natural gas price hike: Domestic natural gas price has increased from $8.60/MMBTU to $9.20/mBtu. However, the ceiling price of APM gas will remain $ 6.5/MMBTU. The new rates are effective from October 1 to October 30.
Natural gas price hike: According to Kirit Parikh formula, the prices of domestic natural gas have increased for the month of October. Domestic natural gas price has increased from $8.60/MMBTU to $9.20/mBtu. However, the ceiling price of APM gas will remain $ 6.5/MMBTU. The new rates are effective from October 1 to October 30. Let us tell you that the price of domestic natural gas is fixed every month.
The increase in prices affects the steel, petrochemical, fertilizer and power sectors. Let us tell you that India imports 55 percent of its natural gas requirement. America, Russia, Qatar, United Arab Emirates are big suppliers who provide liquid natural gas to India. Domestic LNG comes from ONGC.
Common man will be affected
The hike is expected to impact end consumers as city gas distribution companies are likely to increase the prices of compressed natural gas (CNG) as well as piped natural gas (PNG), commonly known as cooking gas. .
This is how the price of natural gas is decided
Under the new formula, the price of domestic natural gas is now decided on the basis of the price of Indian crude basket. Earlier, the price of domestic natural gas was decided on the basis of the price of four big gas trading hubs of the world – Henry Hub, Albany, National Balancing Point (UK) and Russian gas.
