Government Slashes Natural Gas Prices Amid Declining Benchmark Rates
The government has reduced natural gas prices for the first time in two years, benefitting vehicle CNG and cooking gas production. This follows a decline in benchmark rates. The price cut will relieve city gas retailers previously affected by rising input costs.
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In a significant move, the government has slashed natural gas prices for the first time in two years, reflecting a drop in global benchmark rates. The price cut impacts both vehicle CNG and household cooking gas.
According to a notification from the Petroleum Planning and Analysis Cell, natural gas prices from state-owned ONGC legacy fields have been reduced from USD 6.75 to USD 6.41 per million British thermal units (mmBtu). This marks the first reduction since a new pricing formula was implemented in April 2023.
City gas retailers like Indraprastha Gas Ltd and Mahanagar Gas Ltd, who had been grappling with cost pressures, stand to benefit from this reduction. The move follows a decline in international oil prices, with the Indian basket of crude averaging around USD 64 in May, influencing the recalculated APM gas price.
(With inputs from agencies.)
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