According to the report of ICICI Securities, the government can increase the price of gas by about 76 percent in October. That is, due to the increase in the price of gas, CNG and PNG will become expensive.
New Delhi: Rising inflation has broken the back of the common man. Meanwhile, now people are going to get another setback. In fact, in cities like Delhi and Mumbai, the prices of CNG and piped cooking gas (PNG) may increase by 10-11 percent next month. According to the report of ICICI Securities, in October, the government can increase the price of gas by about 76 percent.
Simultaneously, the increase in the price of gas will make driving and cooking more expensive. That is, once again there is going to be a double whammy on the public. In fact, under the new Domestic Gas Policy 2014, the prices of natural gas are fixed every six months. According to this, now the next review will be on October 1. After October, gas prices will be fixed in April 2022.
gas price will increase so much
According to the brokerage, the APM or Administered Rate for the period October 1, 2021 to March 31, 2022 will be US$ 3.15 per million British Thermal Unit (mmBtu), from the current $1.79. Gas rates from deep water fields like Reliance Industries Ltd’s KG-D6 and BP Plc will increase to $7.4 per mmBtu next month.
Prices may increase by 10-11 percent
According to a report by ICICI Securities, city gas distributors (CGDs) will have to hike prices by 10-11 per cent in October. As per the trend in the international markets, the price of APM gas is expected to be US$ 5.93 per mmBtu in April 2022 to September 2022 and US$ 7.65 per mmBtu during October 2022 to March 2023.
Prices will increase by 49 to 53 percent
That is, in April 2022, the prices of CNG and piped natural gas (PNG) will increase by 22-23 per cent and in October 2022 by 11-12 per cent. APM gas price hike from $1.79 per mmBtu in the first half of FY22 to $7.65 per mmBtu in the second half of FY23 would mean MGL and IGL would have to hike prices by 49-53 per cent between October 2021 and October 2022. The hike in gas price will help boost margins of private companies like ONGC and Oil India Limited (OIL) as well as Reliance Industries Limited.
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
