Union Cabinet Caps Rates To Rein-In CNG, Piped Cooking Gas Prices

New Delhi: The Union Cabinet on Thursday approved a new formula for pricing natural gas and a cap or ceiling price for CNG and piped cooking gas to check price rise. Union Information and Broadcasting Minister Anurag Thakur told reporters that natural gas produced from conventional or old fields, known as APM gas, would now be priced based on gas prices in surplus countries like the US, Canada and Russia. will instead be indexed to the price of crude oil. after cabinet meeting

From April 1, the price of APM gas will be 10 per cent of the price of a basket of crude oil (Indian basket of crude oil) imported by India. However, the gas price will be fixed at $6.5 per million British thermal unit as against the current price of $8.57 per mmBtu.

The fixed price will also have a ceiling of US$ 4 per MMBtu. He said the rates would be fixed every month instead of the current practice of bi-annual revision.