News Detail

<p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">CNG prices will be cut by about INR 15 per kg and cooking gas piped to kitchens by about INR 5 after government decided to supply cheaper domestic gas to fuel retailers in cities like Delhi and Ahmedabad.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Oil Minister M Veerappa Moily said the government has decided to raise allocation of natural gas from domestic fields to city gas entities to 100 percent from current limit of 80 percent.</span></span></span> <span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">This would be done by cutting supplies to non-core sectors like petrochemicals, steel and refineries.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The decision would help in reduction of prices of compressed natural gas (CNG) retailed to automobiles in cities like Delhi and Ahmedabad. It will also bring down prices of piped cooking gas to households as cheaper domestic gas will replace costlier imported LNG that entities were using now. &quot;Our target is common man, we want to give common man a relief and in a way this is an anti-inflationary measure,&quot; the Minister said.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Presently Mumbai sources its entire gas requirement from domestic fields and as such there will be no cut in rates in the city. However, in Delhi, which presently uses as much as 28 percent of costlier imported LNG, and cities in Gujarat like Ahmedabad which too were heavily reliant on imported fuel, will see a price cut.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">&quot;This (move) would lead to reduction in price of CNG and PNG across the country (except in those cities which are already getting 100 percent domestic gas like Mumbai). The price of CNG in Delhi would be reduced by about INR 15 per kg (about 30 percent). There will also be a reduction of about INR 5 per cubic metres (about 20 percent) in the price of PNG,&quot; Moily said.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">While the orders for increasing domestic gas supply to CNG entities were issued today, the decision would take 2-3 days to take a effect as gas firms tie-up and sign new supply agreements.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Source-On Request</span></span></span></p>