India Increases Domestic Natural Gas Price for May 2023
For the month of May, India’s domestic natural gas price has increased to $8.27 per metric million British thermal units (mmBtu). It is in line with the new domestic petrol pricing formula that was unveiled last month and represents an increase from the $7.92 price in April.
The price of compressed natural gas (CNG) and piped natural gas (PNG) is not anticipated to be affected by this revision, as the gas produced by the state-run ONGC and Oil India from their nomination fields, which is primarily used for PNG and CNG supplies, has been maintained at a ceiling price of $6.5 per mmBtu.
In an effort to help customers suffering from the current spike in gas prices throughout the world, the government authorised changes to the 2014 gas pricing rules last month. The recommended price for natural gas is 10% of the monthly average of the Indian crude basket, which is a weighted average of the prices of Dubai and Oman (sour) and Brent Crude (sweet) oil.
In accordance with the Administered Price Mechanism (APM) for petrol pricing, CCEA also authorised a floor price of $4 per mmBtu and a ceiling price of $6.50 per mmBtu.
Another change is that, as of May 1, the petroleum and oil marketing businesses would charge Rs 171.5 less per unit for commercial LPG cylinders. The new cost for a 19 kilogramme LPG cylinder in Delhi is Rs 1,856.50, according to a report by ANI. Commercial customers would be relieved by the price drop, but domestic LPG cylinder rates will not change.
It is important to keep in mind that state-specific taxes cause commercial LPG cylinder pricing to differ. Mumbai’s new pricing has decreased from Rs 1,980 to Rs 1,808, whereas Kolkata’s price has increased from Rs 2,132 per unit to Rs 1,960.
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