Gas price for April at $7.92 but price for consumers capped at $6.5: Govt

The federal government on Friday introduced a pure fuel value of $7.92 per unit for the rest of April in keeping with the simply accredited new pricing components, however charges for customers have been capped at $6.5 per unit.

In line with an order of the Oil Ministry’s Petroleum Planning and Evaluation Cell, the worth of pure fuel for April 8 to April 30 interval involves $7.92 per million British thermal unit going by the brand new indexation of pricing it at 10 per cent of imported price of crude oil.

Nonetheless, the Union Cupboard had whereas altering the pricing components capped the charges at $6.5 per mmBtu for 2 years ending March 31, 2025.

“For the fuel produced by ONGC/OIL from their nomination fields, the worth shall be topic to ceiling of $6.5 per mmBtu,” the order stated.

The capped charges that are a few quarter lower than the present costs, will result in CNG and piped cooking fuel costs being reduce by as much as 10 per cent.

Following the choice, the CNG value in Delhi is more likely to be reduce from Rs 79.56 per kg to Rs 73.59 and that of PNG from Rs 53.59 per thousand cubic meters to Rs 47.59. In Mumbai, CNG could price Rs 79 per kg as a substitute of Rs 87 and PNG could price Rs 49 per scm as a substitute of Rs 54.

The Authorities on Thursday accepted a number of key suggestions made by the Kirit Parikh Committee with respect to the pricing of pure fuel produced from APM fields (which might be legacy fields and largely held by PSUs like ONGC).

Beneath the brand new pricing mechanism, the pricing of fuel might be linked to 10 per cent of India’s common month-to-month crude import basket. There would even be a ground value of USD 4 per mmBtu and a ceiling value of $6.5 per mmBtu.

This components replaces the previous one the place the charges had been mounted utilizing 4 worldwide fuel benchmarks. The worth of fuel in keeping with this components was $8.57 per mmBtu for six months ended March 31.

For April 1 to April 7 – the interval previous to the Cupboard choice – the worth of APM fuel could be “$9.16 per mmBtu on a Gross Calorific Worth (GCV) foundation,” the PPAC order stated.

“For the fuel produced by ONGC and OIL from their nomination fields, the APM value shall be topic to a ground and a ceiling.

“The preliminary ground and ceiling costs shall be USD 4 per mmBtu and USD 6.5 per mmBtu respectively. The ceiling could be maintained for the following two years (FY 2023-24 and 2024-25) after which elevated by $0.25 per mmBtu every year,” a separate Gazette notification indicating the choice of the Cupboard stated.

The costs will now be revised each month, going ahead, as a substitute of bi-annual revision.

“The APM costs could be declared on a month-to-month foundation by PPAC on the final day of the month,” the notification stated.

The federal government will monitor costs of CNG and piped pure fuel (PNG) for family kitchens to make sure that the discount in enter fuel value is handed on to the customers.

“PPAC has been mandated to arrange and preserve a portal for monitoring of CNG/PNG client costs on a dynamic foundation. PPAC will develop an acceptable mechanism for receiving usually up to date information from the CGD entities. The portal could be made dynamic to mirror the altering costs at once,” the notification stated.