After petrol-diesel, CNG, PNG prices to pinch too

Compressed Natural Gas (CNG) and domestic Piped Natural Gas (PNG) are set to become dearer by 5 to 7 per cent. The hike comes even as petrol and diesel prices have already gone up and there is immense pressure on the Centre and state governments for measures to provide relief to citizens.

The expected hike in CNG and PNG prices is a result of the central government’s move to hike the price of domestically produced natural gas by 16 per cent — from $2.48 per Metric Million British Thermal Unit (MMBTU) to $2.89 per MMBTU — for the six-month period of October 2017 to March 2018.

The policy for half-yearly revisions was implemented in November 2014 and this is the first time that gas prices have increased after they fell in each of the earlier six revisions. Due to the ongoing public holidays, city gas distribution companies will revise the prices of CNG and domestic PNG in a day or two. “The exact quantum of hike is being worked out but we expect the increase to be about 5 to 7 per cent,” said a senior official from a city gas distribution company.

Industry officials said that Adani Gas, which sells CNG in Ahmedabad and Vadodara at Rs 45.95 per kilo, is expected to revise the price to around Rs 48.50 per kilo. Similarly, domestic PNG price is Rs 529.15 per MMBTU which may cross to Rs 560 to 565.

Gujarat Gas, which sells CNG in other parts of the state at Rs 44.25 per kilo is likely to revise it to around Rs 46.75. PNG price could go up from Rs 576.45 per MMBTU to over Rs 600 per MMBTU.
Incidentally, while natural gas prices have fallen sharply by over 50 per cent over the years, gas companies have been tightfisted in passing on the benefit to consumers.