According to the report of ICICI Securities, the government may increase the price of gas in October. That is, due to the increase in the price of gas, CNG and PNG will become expensive.
New Delhi: The rising inflation is going to take a big blow once again. Once again, the prices of CNG and piped cooking gas (PNG) may increase next month. In the report of ICICI Securities, it has been told that in October, the government can increase the price of gas by about 10-11 percent. Let us know how much the prices will increase now.
Inflation will take a big blow!
Driving and cooking will become costlier due to increase in gas price. 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 administrated rate for the period October 1, 2021 to March 31, 2022 will be US$ 3.15 per million British thermal units (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 $7.4 per mmBtu next month.
Prices may increase by 10-11 percent
According to an ICICI Securities report, city gas distributors (CGDs) will have to hike prices by 10-11 per cent in October. As per the trend in the international markets, the price of APM gas is expected to be US$ 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
There will be an increase of 11-12 per cent in October 2021 and 22-23 per cent in CNG and piped natural gas (PNG) prices in April 2022. 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.
