Best Commodity Tips | Government may increase the price of Domestic Natural Gas by 14% by October. This decision will increase the cost of electricity and urea as well as an increase in CNG in the country. Sources familiar with the development said that the price of natural gas from October 1 is expected to increase to $ 3.5 million British thermal unit (MMBTU), which is currently $ 3.06.
New prices may be announced on September 28
It is worth noting that natural gas prices are fixed every six months based on the average rates of countries with a gas surplus like the US, Russia, and Canada. Sources said the new prices are expected to be announced on September 28. India imports half of the gas compared to its requirement, for which it has to pay twice as much compared to the domestic prices.
The new price will be applicable from October 1
It is clear from October that natural gas prices are estimated to be worth $ 3.50 per MMBtu for 6 months. It will be the highest level after October 2015 and March 2016, when Domestic Producers was paid $ 3.82 per MMBTU for Natural Gas.
ONGC and RIL will get an advantage
Rudra Investment Best Commodity Expert said that Oil and Natural Gas (ONGC) and Reliance Industries (RIL) will get the benefit of increasing prices. However, it will also see an increase in the prices of CNG in the country, for which natural gas is used as input. This will increase the cost of urea and power generation in the country.
The government has increased the price twice in three years
With this, gas prices have been increased to $ 3.06 per MMBTU for the April-September, 2018, compared to $ 2.89 billion during the last six months. This was the second increase in Natural prices during the last three years. Sources said that the government can also increase the alternative fuel-based price limit for undeveloped gas blocks in inaccessible areas like the deep sea. He said that the existing formula is impractical for such areas.
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