PNG, CNG Prices Cut After 2 Years

For consumers who have been paying exorbitant costs for CNG and PNG for a considerable period, there is good news. Both of these gases will soon get price reductions (CNG PNG price drop). After two years, the government has lowered the cost of natural gas used to produce CNG and PNG.

There is excellent news for you if you own a CNG car or have a PNG connection at home. Both of these gases will shortly see a price decrease. After two years, the government has lowered the price of natural gas. This gas is used to make CNG and PNG.

The price of natural gas from fields that were given to ONGC without an auction has dropped from $6.75 per million British thermal units (MMBTU) to $6.41, according to news agency PTI. Since the government introduced a new method for determining the price of such gas in April 2023, this reduction has occurred for the first time.

To what extent might PNG and CNG prices drop?

Experts estimate that natural gas prices have dropped by 5%. However, since gas distribution companies are already under pressure from increased input prices, it is unlikely that they will pass on the full savings to customers. Prices for PNG and CNG might still drop by up to 3%, though. In other words, a 2–3 rupee drop in CNG prices is anticipated.

Businesses like Indraprastha Gas Limited, Mahanagar Gas Limited, and Adani-Total Gas Limited would also benefit from the drop in natural gas costs.

In April 2023, for example, the Central Government approved the report of an expert group that suggested setting the price of gas generated in legacy areas at 10% of the average monthly price of crude oil imports. This maintained a minimum cap of $4 and a maximum cap of $6.5 per MMBTU.

The price of oil has decreased on the global market. In May, the average price of Indian crude oil was about $64. The price of natural gas was $6.41 per mmBtu using this benchmark.

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