CNG-PNG Price Update: Natural gas prices cut by 50%, will CNG-PNG prices be reduced? Know what the government said

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Rollback of CNG-PNG price hike: Natural gas prices have fallen by 50 percent in recent days. In such a situation, the expectation of reduction in the price of CNG-PNG is increasing in the coming days. So in this connection, a question has also been asked to the government in Parliament on Thursday whether the government is going to withdraw the decision to reduce the prices of CNG-PNG?

Pressing the question, Minister of State for Petroleum Rameshwar Teli said that the prices of CNG and PNG are fixed by PNGRB (Petroleum and Natural Gas Regulatory Board) authorized city gas distribution companies considering the purchase price of gas, taxes and other components. He said that the Government of India has taken several steps to control the prices. He said that between January 2021 and November 2022, there has been a jump of 327 per cent in the prices of gas in the international market, while the price of CNG in India has increased by only 84 per cent.

The Minister of State for Petroleum said that in order to control the prices, domestic gas allocation has been increased by 250 per cent as compared to 2013-14. Also domestic gas has been diverted from power and non-essential sectors to meet CNG PNG requirements. Government is giving priority to CNG-PNG segment in domestic gas allocation.

Actually, there has been a huge fall in the prices of natural gas in the international market. Gas prices have crossed $10 per unit in August 2022 to around $3.2 per unit. It is believed that from April 1, 2023, when the Petroleum Ministry will review the prices of natural gas, there may be a big fall in the prices of gas. Due to which the price of CNG-PNG is likely to come down. After Russia’s attack on Ukraine, there has been a big jump in the prices of natural gas.

On October 1, 2021, CNG was being sold at Rs 45.5 per kg in the capital Delhi. Which is now selling at Rs 79.56 per kg. In 16 months, the price of CNG has increased by Rs 34.06 per kg, which means that CNG has become costlier by more than 73 percent during this period. The increase in the prices of CNG-PNG in the last one year has contributed a lot to the inflation.

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