The price that you paid until now for using PNG or piped natural gas for cooking and CNG or compressed natural gas for running your vehicle is set to rise in coming days as the government has revised the price of natural gas higher to $2.89 per mm Btu. The hike effective for the period between October and March 2017-18 is the first hike in three years time. Further this is for the gas which is produced in the local fields of RIL's KG-D6, ONGC and OIL.
In a notification, it also sharply increased the ceiling on premium price for natural gas produced from tough fields to to .3 per million metric British Thermal unit. This increase has been made as per the reference rate in global economies.
How much shall be impact on PNG and CNG price?
The increase in price of natural gas produced in domestic field shall have a direct bearing on your CNG and PNG bill as natural gas is used as a feedstock by producers of power, fuel distributors etc. The liquefied natural gas which is imported by power companies as well as fertilizer manufacturers helps them to provide a cushion to their margins as they can now increase the mix of LNG depending on its price in the open international markets.