An announcement regarding the slashing of the prices of CNG and PNG was made by Union Information and Broadcasting Minister, Mr Anurag Thakur, on the recommendation of an expert panel chaired by a renowned economist, Mr Kirit Parikh. The new prices will go into effect on Saturday, April 8, 2024.
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The announcement regarding the reduction in prices was made on Thursday by Mr Anurag Thakur, Union Information and Broadcasting Minister. The prices will be slashed by 11% as of Saturday. This decision will positively impact a lot of people as it will effectively reduce the cost of piped natural gas (PNG) supplied to kitchens and compressed natural gas (CNG) used in automobiles. The panel was chaired by an economist, Mr Kirit Parikh, under whose recommendation the decision was finalised.
The day of the announcement coincided with the foundation day of the Bhartiya Janata Party (BJP), and this announcement aims to provide relief to millions of consumers, especially those who are using CNG and PNG across the country. While praising honourable Prime Minister Mr Narendra Modi, Mr Thakur said, It is a gift from Mr Narendra Modi to the people of India on the foundation day of the Bhartiya Janta Party (BJP), further adding that it is a good day and a good decision that will benefit farmers, industrial units, and domestic consumers. He also mentioned that the decision will strike a balance between the interests of both producers and consumers.
Recommendations of an Expert Panel
The committee was set up last year by the government, and many things were taken into consideration by the energy expert Prof. Kirit Parikh. The gas prices were reviewed, and a new pricing formula was decided to keep in mind both the producers and the consumers. A neutral decision was made that would benefit both parties.
Currently, India imports 85% of its crude oil and 55% of its natural gas from other countries, and the reduction in the price of these gases is a significant decision taken in the interest of the country, which will also contribute to and ensure India’s goal of net-zero carbon emissions.
The newly administered price mechanism is applicable on a nomination basis without competitive bidding to those who already have the state-run explorers, Oil India Limited (OIL) and Oil and Natural Gas Cooperation (ONGC). The share of India’s natural gas in the primary energy mix is currently at 6.5%, and the target of the government is to increase it to 15% by 2030.
New Prices for CNG and PNG
The Minister said the prices will come into effect on Saturday, and the tentative reduction in the prices of Administered Price Mechanism gas (APM) will be a great benefit for the consumers of CNG and PNG.
The prices have been reduced in all the major cities of India; the prices have been slashed by 11%, which means if CNG is Rs. 97 in Pune, you will now be able to get it for Rs. 87 per kg. If the price of CNG in Delhi is Rs. 53.49, it will be reduced to Rs. 47.49 per kg. In Mumbai, the price per kg will drop to Rs 52 which is now at Rs. 57 per kg. In Bangluru, the price will from Rs. 58.5 per to Rs. 52 per kg.
