Natural gas prices fall by 50 percent, will CNG-PNG prices decrease?

Rollback of CNG-PNG Price Hike: The prices of natural gas have come down by 50 percent in recent times. In such a situation, the expectation of reduction in the prices of CNG-PNG has started increasing in the coming days. So in this regard, a question has also been asked to the government in Parliament on Thursday whether the government is going to withdraw the decision to cut the prices of CNG-PNG?

Pressing this question, Minister of State for Petroleum Rameshwar Teli said that the prices of CNG and PNG are fixed by PNGRB authorized city gas distribution companies keeping in view the purchase price of gas, taxes and other components. He said that the Government of India has taken several steps to control the prices. He told that between January 2021 and November 2022, there has been a jump of 327 per cent in the prices of gas in the international market, while in India the price of CNG has been increased by only 84 per cent.

The Minister of State for Petroleum said that in order to control the prices, the allocation of domestic gas has been increased by 250 percent as compared to 2013-14. Also, domestic gas has been diverted from power and non-essential sectors to meet CNG PNG requirements. The government is giving priority to the CNG-PNG segment in domestic gas allocation.

In fact, there has been a big fall in the prices of natural gas in the international market. Gas prices have come down to around $3.2 per unit, which had crossed $10 per unit in August 2022. It is believed that from April 1, 2023, when the Petroleum Ministry will review the prices of natural gas, then there can be a huge cut in the prices of gas. Due to which there is a possibility of reduction in the prices of CNG-PNG. After the attack on Russia’s Eukrem, there was a big jump in the prices of natural gas.

On 1 October 2021, CNG was being sold at Rs 45.5 per kg in the capital Delhi. Which is now being sold for Rs 79.56 per kg. In 16 months, the price of CNG has increased by Rs 34.06 per kg, which means CNG has become costlier by more than 73 percent during this period. In the last one year, the increase in the prices of CNG PNG has contributed a lot in increasing the inflation.

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