Transportation sector welcomes new Gas pricing guidelines

April 7, 2023
Category : 
Views: 798
Spread the word by Sharing:

New Delhi,April 7, 2023: The government has approved a new method to fix the price of natural gas in India, which will result in a decrease in the cost of piped natural gas (PNG) and compressed natural gas (CNG). The revised domestic natural gas pricing guidelines will apply to gas produced from nomination fields of ONGC/OIL, New Exploration Licensing Policy (NELP) blocks and pre-NELP blocks, where the government has the power to approve prices. Natural gas produced from legacy or old fields will now be indexed to crude oil price instead of pricing it based on gas prices in surplus nations such as the US, Canada and Russia. The price of such natural gas shall be 10 per cent of the monthly average of Indian Crude Basket and shall be notified on a monthly basis. This move will make PNG or cooking gas cheaper by 10 per cent and lower the cost of CNG by 6-9 per cent, which will bring down the price of CNG by Rs 5-8 a kg in various parts of the country and that of PNG by Rs 5-6.5 per SCM (standard cubic metre). The new guidelines are intended to ensure a stable pricing regime for domestic gas consumers while at the same time provide adequate protection to producers from adverse market fluctuation with incentives for enhancing production.

Mr Vinod Aggarwal, President, SIAM and MD & CEO CECV

Welcoming the new Gas pricing guidelines, Mr Vinod Aggarwal, President, SIAM and MD & CEO CECV said “Realignment of the Gas Pricing mechanism by insulating the Indian consumers from the spikes in Global prices will soften prices in India and will provide much needed relief to the Transportation sector. This measure will also help in re-igniting interest in CNG vehicles in India and would go a long way in promoting a clean Alternative fuel in various parts of the country. Incentivising greater production of Natural Gas will result in reduction in import dependence of conventional fuels, thereby enabling expansion of CNG infrastructure across the country and facilitating wider availability of CNG for vehicles.”

Subscribe For Latest Updates

Sign up for the latest news and launches straight to your inbox

We promise not to spam you.

Spread the word by Sharing:
EVStory team is group of well seasoned journalists from the e-mobility segment with rich experience in the auto industry.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles from the same category:
FEATURES

SIAM releases Motor Vehicle Data-March 2024, & Annual data of 2023-24

FEATURES

Hero Lectro and Magucho curate an Electrifying Experience Ride in Mumbai

FEATURES

GreenLine Mobility collaborates with Netradyne to enhance fleet and driver safety

TECHNOLOGY

Namma Yatri app launched in Delhi to improve Metro Connectivity

1 2 3 52
EVStory.in - India's best EV Portal
Get a complete insight into the latest news, reports, features & in-depth analysis on the EV industry in India
Copyright 2022 EVStory LLP. All rights reserved. 
crossmenu