Piped gas or PNG and fuel used in transportation will get costlier with effect from October 1, 2018. The rate hike has been made by 9.8 per cent for the period from October to March 2019.
The domestically produced natural gas is now priced at $3.36 a unit which is measured in million British thermal units from the earlier $3.06/mBtu. The gas produced from other sources such as deepwaterm ultra-deep water and high pressure or high temperature areas has also seen an increase from $6.78 per mBtu during April-September period to $7.67 a mBtu.
This is the steepest hike for the second time since the implementation of the New Domestic Gas Policy, 2014. Electricity rates will go higher with every dollar increase in gas price and an increase shall be approximately 50-55 paise a unit. In case of the piped natural gas, the rate will go higher by around 2.6 per SCM (standard cubic metre).
The domestically produced gas price is revised based on a formula benchmarked to 'wellhead' prices in four gas markets.