Cooking gas price may go up
Posted on: 24/Mar/2018 12:28:39 PM
The government may raise natural gas prices from next month, with the benchmark price for gas produced in domestic fields expected to hit a two-year high. If the proposal goes through, it will not only affect your monthly budget for piped natural gas, or cooking gas, but will translate into a hike in prices of CNG, electricity and urea production.
However, the hike will have minimum effect on power tariffs as less than 8 per cent of our total power is produced at gas-fired plants.
Prices of natural gas are fixed every six months, which depends on the average rates in gas-surplus nations like the US, Russia and Canada. The price revision is due next week.
According to industry experts, the price hike will help increase in earnings of companies, such as Oil and Natural Gas Corp and Reliance Industries, and also help the country in minimising their energy needs and increasing the share of natural gases in its energy mix.
Of the total India`s gas requirement, almost 50 per cent are met through imports from spot market and long-term contracts. The prices in the spot market vary from $10-12 a unit and it is $10-11 a unit for the long-term contracts.
