Expected further rise in CNG-PNG prices, GAIL hikes gas prices by 18 percent

Green Gas on Monday increased the rates of CNG in Lucknow by Rs 5.3 per kg to Rs 96.1 per kg. On the other hand, due to increase in prices by GAIL, there is a possibility of increase in prices in other places as well.

GAIL hikes gas prices

There is a possibility of further increase in CNG and PNG prices in the coming time. In fact, the prices of natural gas supplied by the Gas Authority to the city gas companies have been increased. During the monthly review, GAIL has increased the prices by 18 percent. The gas available to City Gas has now reached the level of $ 10.5 per mmBtu. With rising costs, it has become possible that companies CNG And will increase the prices of PNG. Green Gas on Monday increased the rates of CNG in Lucknow by Rs 5.3 per kg to Rs 96.1 per kg.

How much have gas prices increased

According to the Economic Times report, with the change on Monday, gas prices have become 3.5 times the prices at the end of March and have become 6 times compared to last year. This increase in prices has been recorded due to the increase in gas prices in foreign markets. In fact, India imports half of its requirement, so GAIL is meeting the demand through domestically produced and imported gas. With gas prices reaching record highs in overseas markets, GAIL’s costs are also increasing, which it is transferring to city gas companies. In such a situation, there has been an apprehension that the city gas companies, which deliver gas to the customers, may transfer the increase in cost to the customers. Companies are constantly passing the previous gains to the customers. CNG prices have increased by 74 per cent in Delhi and 62 per cent in Mumbai during a year and may continue to rise further. According to the Economic Times, there has been an increase of 18 percent in gas prices, that is, such an increase in rates is also possible for customers.

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Why there is pressure on PNG and CNG prices

According to the report, the pressure in gas prices is higher than that of petrol and diesel because the tax rates on petrol and diesel are very high. On the other hand the share of tax on gas is not that much. That is, the prices of CNG and PNG will come down only when there is a softening of gas prices. However, the government can keep the prices under control by giving tax exemption on petrol and diesel. There has been a sharp jump in gas prices in the last one year. In August last year, the price of natural gas was $ 1.79 per mmBtu, which has increased to $ 6.1 per barrel by this April. GAIL fixes the price of natural gas on the basis of the average of domestic and imported gas. At present, this price is beyond $ 10 per barrel.