Government New Gas Pricing Formula, CNG And PNG To Cost 10% Less
The cost of compressed natural gas and piped cooking gas will decrease by 10% as a result of the Indian government’s revision of the gas pricing mechanism.
Compressed natural gas (CNG) and piped cooking gas are likely to cost 10% less in India as a result of a modification to the pricing mechanism for natural gas that the Indian government has announced. Beginning on October 1, 2021, the new price structure will be in place.
A weighted average of the natural gas prices in the US, Canada, the UK, and Russia serves as the foundation for the updated formula.
The current pricing scheme, which was determined by averaging the prices of gasoline in the US, Canada, and the UK, will be replaced by the new one.
Millions of homes and companies around the nation that rely on CNG and piped cooking gas are anticipated to profit from the modification in the price mechanism.
By lowering the cost of production for enterprises and industries, the price drop of gas is also anticipated to benefit the Indian economy.
The Indian government has been promoting the use of natural gas as a cheaper and cleaner substitute for other fossil fuels throughout the nation. By 2030, the government wants to see natural gas’s percentage in the nation’s energy mix rise from the current 6.5% to 15%.
More people should move to natural gas for their energy demands as a result of the decrease in the price of CNG and piped cooking gas, according to expectations.
The usage of natural gas is also anticipated to increase the country’s energy security and decrease its reliance on imported fossil fuels.
Industry experts have applauded the government’s efforts to promote the usage of natural gas throughout the nation and praised the modification to the pricing mechanism.
By lowering the carbon footprint of the nation’s energy sector, the decision is anticipated to have a favorable effect on the environment.
The adjustment to the gas pricing formula by the Indian government is a step in the right direction to encourage the usage of natural gas in the nation.
Millions of households and companies should benefit from the lower cost of CNG and piped cooking gas, which will also help the nation achieve its economic and environmental goals.
The action is anticipated to increase the number of people who switch to natural gas and lessen the reliance of the nation on imported fossil fuels.