The government on Friday hiked natural gas price by 16.5% to $2.89 per million British thermal unit, the first increase in nearly three years that will give relief to producers but raises rates of CNG. Price of natural gas has been raised from $2.48 per MMBtu to $2.89 per MMBtu for six months beginning October 1, oil ministry’s Petroleum Planning and Analysis Cell (PPCA) said. As per the new gas pricing formula approved by the NDA- government in October 2014, gas prices are to be revised every six months. The increase in natural gas prices would mean higher raw material cost for compressed natural gas (CNG) and natural gas piped to households (PNG). Every dollar increase in gas price results in Rs 4,000 crore additional revenue for the PSU on an annual basis.

Source: Hindustan Times September 29, 2017 15:33 UTC