Soon The prices of PNG used as CNG and LPG used in vehicles may see a decline. The government has reduced the price of natural gas used in the production of CNG and PNG for the first time in two years. The government has made this deduction after crude oil prices remained at a low -lying level. According to a notification by the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum, natural gas has been reduced from $ 6.75 to $ 6.41 per 10 lakh British thermal units (MMBTU) from $ 6.75 to $ 6.41 per 10 lakh British thermal units (MMBTU).
A new formula was implemented for the price of APM
This is the first cut since the government implemented a new formula for the price of such gas in April 2023. This will help urban gas retailers like Indraprastha Gas Limited, Metropolitan Gas Limited and Adani Total Gas Limited. These companies were under pressure from increase in production costs. In April 2023, the Union Cabinet accepted the report of an expert committee, which was said to determine the price of gas received from the old areas called APM gas at 10 percent of the monthly average import price of crude oil on a monthly basis. In which the limit of minimum four dollars and maximum $ 6.5 per 10 lakh British thermal unit was fixed. The maximum value was to remain unchanged for two years and then grow at the rate of $ 0.25 every year. Accordingly, the maximum price in April rose to $ 6.75 per unit.
Crude oil declines
Crude oil closed down with a decline on the last trading day of the past week. Crude oil WTI futures closed at $ 60.79 an ounce with a decline of 0.25 per cent or $ 0.15. At the same time, Brent Oil closed at $ 62.78 an ounce with a decline of 0.90 per cent or $ 0.57.
Latest business news
