CNG, PNG set to get costlier from next month as 12-14% increase in domestic natural gas price expected
The price of CNG and PNG are set to rise from next month as the government will revise the prices of domestic natural gas for the October 2018-March 2019 period as per the new New Domestic Gas policy. Care Ratings has calculated that the rise in prices could by 12% from the current $3.06/mmBtu to approximately, $3.43/mmBtu.
As per the report, the rise in prices of natural gas will result in costlier CNG, PNG, manufacturing of urea and petrochemicals where natural gas is used as a feedstock. Earlier, news agency PTI had reported that the government might increase the price of domestic natural gas by 14%.
The revised price is likely to be announced on September 28. “Rise in the natural gas price will result in the increase in the cost of manufacturing of urea and petrochemicals where natural gas is used as a feedstock. There will be a rise in the prices of CNG and PNG which will affect the consumers,” Care Ratings said in a report.
“Increase in price of Natural gas will also affect the margins of the power sector and sponge iron industry where it used for the generation of energy,” the report added.