India Links Natural Gas Prices With Imported Crude; PNG, CNG To Cost Less
NDTV
India is targetting to increase the share of natural gas in the primary energy mix from the current 6.5 per cent to 15 per cent by 2030
The government has approved a new method to fix the price of natural gas. Natural gas produced from legacy old fields, known as APM gas, will now be linked to crude oil price instead of gas prices in surplus nations such as the US, Canada and Russia, Union Minister Anurag Thakur told reporters after a cabinet meeting today. #Cabinet approves revised domestic gas pricing guidelinesprice of natural gas to be 10% of the monthly average of Indian Crude Basket, to be notified monthlyMove to ensure stable pricing in regime and provide adequate protection to producers from adverse market fluctuation pic.twitter.com/NRONPAOzzK In continuation to various initiatives taken under the leadership of PM Sh @narendramodi Ji to protect the interest of consumers by reducing the impact of increase in international gas prices on gas prices in India #UnionCabinet approves revised domestic gas pricing guidelines! pic.twitter.com/nKX44eiW46
This will make piped natural gas (PNG) cheaper by 10 per cent and lower the cost of compressed natural gas (CNG) by 6 per cent to 9 per cent, oil secretary Pankaj Jain said today.
The government will issue a notification tomorrow to announce this change and the decision will come into force from Saturday.
"The price of such natural gas shall be 10 per cent of the monthly average of Indian Crude Basket and shall be notified on a monthly basis," the government said in a statement, referring to India's crude purchase and how much of it would be linked with fixing the price of natural gas.
