Cooking Gas Prices Likely To Double: Due to the shortage of gas at the global level, not only will cooking become expensive but the prices of CNG, PNG and electricity will increase.
Along with running the vehicle, the cost of production in factories will also increase. There will also be an increase in the Fertilizer Subsidy Bill of the government.
new Delhi. After petrol and diesel, now LPG is also going to shock the consumers. For common people troubled by inflation, cooking can be expensive from April. Actually, there has been a huge shortage of gas in the world (Global Gas Crunch). In April, its effect can also be seen on India. Due to this, the gas prices in the country can be doubled.
Due to the shortage of gas globally, cooking will not only become expensive but the prices of CNG, PNG and electricity will increase. Along with running the vehicle, the cost of production in factories will also increase. There will also be an increase in the Fertilizer Subsidy Bill of the government. Overall, the effect of all this is going to be on the common consumer only.
Supply not meeting demand
The global economy is coming out of the outbreak of the corona pandemic. Along with this, the demand for energy is increasing all over the world. But, with the increase in demand, concrete steps were not taken to supply it. This has led to a significant increase in gas prices.
Industry already paying high price
Industry experts say that the domestic industry is already paying a higher price for imported LNG due to long-term contracts. Prices in long term contracts are linked to crude oil. The industry has cut back on buying from the spot market, where prices have been on fire for several months.
The effect will be visible after the change in domestic prices
The effect of global gas shortage will be visible from April, when the government will change the domestic prices of natural gas. Experts say that it can be increased from $ 2.9 per mmBtu to $ 6 to $ 7. According to Reliance Industries, the price of gas from the deep sea will increase from $ 6.13 to about $ 10. The company will auction some gas next month. For this, it has linked the floor price to crude oil, which is currently $ 14 per mmBtu.
Price will increase by up to Rs 15 per kg
Domestic natural gas prices in the country are fixed every year in April and October. The April price will be based on the international prices from January to December 2021. According to AK Jena, Director, Indraprastha Gas Limited, the price of CNG will increase by Rs 4.5 per kg on the rise of one dollar in the price of domestic natural gas. This means that the price of CNG can increase by up to Rs 15 per kg.
