• Home
  • Contact Us!
  • Privacy Policy

Radio Metta

  • Home
  • Business
  • Education
  • Health
  • Home Deco
  • News
  • Real Estate
  • Technology
  • Contact Us!
  • Privacy Policy
Home» News»Piped gas, CNG prices fall by Rs 1.5 per kg

Piped gas, CNG prices fall by Rs 1.5 per kg

Saheli 03 Apr 2016 News Comments Off on Piped gas, CNG prices fall by Rs 1.5 per kg 388 Views

Fertilizer, power and steel companies to benefit

here is good news in store for homemakers who use piped natural gas (PNG) for cooking and motorists who use compressed natural gas (CNG) with prices of PNG and CNG likely to come down by Re 1 to Rs 1.5 per kg with effect from April 1.

Thanks to the third consecutive reduction in domestically produced gas prices by 20 per cent to $3.06/mmbtu, natural gas distribution firms such as Mahanagar Gas (MGL) and Indraprastha Gas are planning to reduce the cost of PNG and CNG to pass on the benefit of falling gas prices to consumers.

The government’s 20 per cent cut in domestic gas prices will translate into a reduction of Rs 0.5/scm (standard cubic metre to Rs 1.5/scm in PNG prices for domestic customers and a Rs 0.8/kg-Rs 1.5/kg cut in CNG prices, according to India Ratings and Research (Ind-Ra) estimates. Lower prices are seen to directly impact the revenues of domestic gas producers by Rs 3,000-3,200 crore during the first half of FY17.

An MGL spokesperson was not immediately available for comment but a source said the company was likely to announce the reduction in PNG and CNG prices on Friday.

The revised price means city gas distribution (CGD) entities could incur a Rs 1.9-2 lower cost per SCM on gas procurement. Over October 2015-March 2016, the price of diesel increased by 8 per cent while CNG remained unchanged, thus increasing the fuel competitiveness of CNG.

Considering that the pricing power for CNG and PNG lies with the CGD entities, the quantum of benefits passed may vary across consumers and geographies.

A Re 1/kg cut in CNG prices will make CNG 47 per cent more competitive than diesel in Delhi, compared with the current 41 per cent.

As CNG contributes more than 50 per cent of total volume of gas sold by the CGD entities, higher competitiveness will help volumes thereby compensating for loss in revenues from the price cut to some extent.

The third consecutive domestic gas price reduction since the implementation of the domestic gas pricing formula is driven by the decline in average gas prices at the reference hubs over January-December 2015.

The price of gas has declined by around 39 per cent since the implementation of the gas pricing formula in October 2014.

The previous downward price revision was to $3.82/mmbtu from $4.66/mmbtu on October 1, 2015.

The move will also benefit fertilizer, power and steel companies who rely heavily on natural gas. It will also lower their working capital requirements.

[Source:- The Hindu]

1.5 by CNG fall gas kg per Piped prices Rs 2016-04-03
Tags 1.5 by CNG fall gas kg per Piped prices Rs
Facebook Twitter Stumble linkedin Pinterest More

Authors

Posted by : Saheli
Previous Article :

Miami-style beachfront compound to hit market for $8M in Brooklyn

Next Article :

Australia opposes Trump’s Asia nuclear policy: PM Turnbull

Related Articles

Our testimony regarding the California Journalism Preservation Act to the Judiciary Committee of the California Senate

Our testimony regarding the California Journalism Preservation Act to the Judiciary Committee of the California Senate

admin 24 Mar 2025
The most effective method to Make Your Most memorable Computerized Advertising Effort in Science

The most effective method to Make Your Most memorable Computerized Advertising Effort in Science

admin 29 Nov 2024

Understanding Common Refrigerator Issues: A Quick Guide

admin 22 Nov 2024

Latest Post

How is PSA used to monitor prostate cancer?
Health

How is PSA used to monitor prostate cancer?

admin 01 Sep 2025
The Future of High Performance Networking: Ultra Ethernet Explained
Technology

The Future of High Performance Networking: Ultra Ethernet Explained

admin 28 Aug 2025
Why a focus on foundational education must be at the heart of the response: Out of school but not out of reach
Education

Why a focus on foundational education must be at the heart of the response: Out of school but not out of reach

admin 23 Aug 2025
HP Increases Innovation in Gaming
Technology

HP Increases Innovation in Gaming

admin 19 Aug 2025
Anatomy, Function, and Common Injuries of Hamstring Muscles
Health

Anatomy, Function, and Common Injuries of Hamstring Muscles

admin 12 Aug 2025
Gaming Your Way to Sharper AI Prompts
Technology

Gaming Your Way to Sharper AI Prompts

admin 07 Aug 2025
15 Elegant Living Room Hanging Lights
Home Deco

15 Elegant Living Room Hanging Lights

admin 04 Aug 2025
September 2025
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
2930  
« Aug    
  • Home
  • Contact Us!
  • Privacy Policy
Copyright 2016, All Rights Reserved
Magazine Blog News WordPress Theme