In accordance with the global heightened price rise brought on by the Ukraine crisis, natural gas prices have increased today by 40% to a record level.
The price of natural gas has been increased by 40% today to a record high by the Ministry of Petroleum & Natural Gas of the Indian Government. Basically, enterprises use natural gas for production, transportation, heating, and electricity generation. Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) are two more modified forms of natural gas that are commonly utilized for vehicle fueling and cooking in large cities in India. Natural gas prices, which have already increased by 70% in the past year, will undoubtedly have an impact on those daily routines. Furthermore, rising natural gas prices will fuel inflation.
According to a notice from the Government of India’s Ministry of Petroleum & Natural Gas, two-thirds of India’s total gas production, which previously cost $6.1/mmBtu, now costs $8.57/mmBtu.
For the six months beginning on April 1, the cost of domestic natural gas has more than doubled from $2.90/mmBtu in the second half of FY22 to $6.10/mmBtu. This will apply to the state-run Oil and Natural Gas Corporation Ltd.(ONGC) and Oil India Ltd.’s(OIL) regulated gas fields.
At same time, price of gas from the fields operated by Reliance Industries Ltd. and its partner BP plc was increased from $9.92/mmBtu to $12.6/mmBtu. Those fields are considered as deep-water, ultra deep-water and high pressure-high temperature areas.
