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Home » CNG, PNG to cost more
News Update

CNG, PNG to cost more

Gas prices witness 40% sharp hike
News DeskBy News Desk2 October 2022No Comments1 Min Read
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In line with the global firming up of energy prices, natural gas prices, which are used to produce electricity, fertilizer, and CNG to power automobiles, increased sharply by 40% to record levels.

The price paid for gas generated from old fields, which make up about two-thirds of all gas produced in the country, was raised by an order from the Petroleum Planning and Analysis Cell (PPAC) of the Oil Ministry from $6.1 per million British Thermal Units (mmBTUs) to $8.57 per million BTUs.

According to the ruling, the cost of gas from difficult and more recent fields, like those in the deep sea D6 block in the KG basin, managed by Reliance Industries Ltd. and its partner British Petroleum PLC, was raised from $9.92 to $12.6 per mmBTU.

These are the highest rates for managed/regulated fields and free-market locations, including the Bassein field operated by ONGC off the coast of Mumbai (such as the KG basin).

Additionally, since April 2019, rates have increased three times. This rise is a result of rising benchmark worldwide pricing.

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