Gas firms cut CNG price by Rs 8 a kg, PNG 5 per scm

express news service

NEW DELHI: As the government set the price of natural gas at $6.5 per mmBtu on Friday for April 2023 under the new pricing formula, distribution companies began to reduce the price of CNG and PNG. Companies like Mahanagar Gas Limited (MGL), Adani Total Gas Ltd (ATGL) and Torrent Gas have announced a substantial reduction in the price of compressed natural gas (CNG), which is used as a transportation fuel, and piped natural gas (PNG), used for domestic purposes.

According to the price notification, Adani Total Gas, which supplies gas in Gujarat, reduced the price to Rs 8.13/kg in CNG and Rs 5.06/scm in PNG. It also reduced PNG's prices for its industrial and commercial consumers by Rs 3.0/scm in their Geographical Areas (GA). Similarly, Mahanagar Gas Limited (MGL), announced a reduction in CNG price from Rs 8/kg to Rs 79/kg and PNG price from Rs 5/scm to Rs 49/scm.

Torrent Gas, which supplies 34 districts across the country including the cities of Chennai and Jaipur, today announced a drastic price cut to Rs 8.25 per kg on CNG and Rs 5 per SCM in PNG. Meanwhile, Indraprastha Gas in Delhi cut CNG and PNG prices by as much as Rs 6.

The move comes after the government revised the gas pricing formula on Thursday which took effect from Saturday (April 8, 2023). Under the new pricing rules, the price of gas will be determined based on the basket of average crude oil prices from the previous months, but with a minimum and maximum price of $4/mmBtu and $6.5/mmBtu, respectively. On Friday (April 7, 2023), the Ministry of Petroleum announced the natural gas price of $7.92 per unit for April 2023, but under the new pricing formula, it was capped at $6.5 per unit.

Subsequently, gas companies have begun to reduce the prices of CNG and PNG in the country. “PNG and CNG affordability is improving with savings of over 40% for CNG consumers compared to gasoline prices and around 15% for PNG domestic consumers compared to LPG prices,” Adani Total Gas said in a statement.

The government said the purpose of the new pricing rule will increase the share of natural gas in the energy mix from the current 6.5% to 15% by 2030. It believes the reforms will help expand natural gas consumption and contribute to achieving the emissions reduction goal.

</p> <div class='code-block code-block-3' style='margin: 8px 0; clear: both;'> <script async src="https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js?client=ca-pub-4583029746071814" crossorigin="anonymous"></script> <!-- Z new ad inserteer --> <ins class="adsbygoogle" style="display:block" data-ad-client="ca-pub-4583029746071814" data-ad-slot="9286200830" data-ad-format="auto" data-full-width-responsive="true"></ins> <script> (adsbygoogle = window.adsbygoogle || []).push({}); </script></div> <p>NEW DELHI: As the government set the price of natural gas at $6.5 per mmBtu on Friday for April 2023 under the new pricing formula, distribution companies began to reduce the price of CNG and PNG. Companies like Mahanagar Gas Limited (MGL), Adani Total Gas Ltd (ATGL) and Torrent Gas have announced a substantial reduction in the price of compressed natural gas (CNG), which is used as a transportation fuel, and piped natural gas (PNG), used for domestic purposes. According to the price notification, Adani Total Gas, which supplies gas in Gujarat, reduced the price to Rs 8.13/kg in CNG and Rs 5.06/scm in PNG. It also reduced PNG's prices for its industrial and commercial consumers by Rs 3.0/scm in their Geographical Areas (GA). Similarly, Mahanagar Gas Limited (MGL), announced a reduction in CNG price from Rs 8/kg to Rs 79/kg and PNG price from Rs 5/scm to Rs 49/scm. Torrent Gas, which supplies 34 districts across the country including the cities of Chennai and Jaipur, today announced a drastic price cut to Rs 8.25 per kg on CNG and Rs 5 per SCM in PNG. Meanwhile, CNG and PNG prices were cut by up to Rs 6 by Indraprastha Gas in Delhigoogletag.cmd.push(function() {googletag.display('div-gpt-ad-8052921-2'); }); The move comes after the government revised the gas pricing formula on Thursday which took effect from Saturday (April 8, 2023). Under the new pricing rules, the price of gas will be determined based on the basket of average crude oil prices from the previous months, but with a minimum and maximum price of $4/mmBtu and $6.5/mmBtu, respectively. On Friday (April 7, 2023), the Ministry of Petroleum announced the natural gas price of $7.92 per unit for April 2023, but under the new pricing formula, it was capped at $6.5 per unit. Subsequently, gas companies have begun to reduce the prices of CNG and PNG in the country. “PNG and CNG affordability is improving with savings of over 40% for CNG consumers compared to gasoline prices and around 15% for PNG domestic consumers compared to LPG prices,” Adani Total Gas said in a statement. The government said the purpose of the new pricing rule will increase the share of natural gas in the energy mix from the current 6.5% to 15% by 2030. It believes the reforms will help expand natural gas consumption and contribute to achieving the emissions reduction goal.<br />