Muristek
New Delhi, March 31
The government on Thursday more than doubled the price of natural gas that is used to produce electricity, make fertilisers, turned into CNG and piped to household kitchens (PNG) for cooking, on the back of a spike in global energy prices.
Spike in global energy prices to blame
The new prices, which are likely to result in a hike in CNG and piped cooking gas rates, will be for six months beginning April 1The price of gas produced from gas field of Bassein of ONGC will rise to a record high of $6.10 per unit from $2.90The rate applicable to newer and difficult fields such as ones of Reliance in KG Basin will get $9.92 per mmBtu as compared to current $6.13The price of gas produced from old regulated fields, such as the nation's largest gas field of Bassein of ONGC, will rise to a record high of $6.10 per million British thermal unit (mmBtu) from the current $2.90 per mmBtu, according to the Oil Ministry's Petroleum Planning and Analysis Cell (PPAC).
The new price, which is likely to result in a hike in CNG and piped cooking gas rates, will be for six months beginning April 1. Petrol and diesel prices have been raised nine times in the last 10 days, totalling Rs 6.4 per litre while cooking gas LPG rates too have gone up by Rs 50 per cylinder. The latest gas price hike will further fuel inflation.
The rate applicable to newer and difficult fields such as ones of Reliance Industries Ltd in deep-sea KG-D6 block, will get $9.92 per mmBtu for April-September as compared to current $6.13 per mmBtu, the PPAC notification said. These are the highest prices ever paid to Indian gas producers.
The government sets the price of gas every six months — on April 1 and October 1 — each year based on rates prevalent in gas surplus nations such as the US, Canada and Russia. —