Be ready to get you home budget increased. Prices of natural gas are estimated to increase by 18 percent in April. This can lead to an increase in the prices of the kitchen (PNG) and CNG supplied by pipes in the country. Estimates of this increase have been released in a report of Care Ratings. Not only this, this increase can have an impact on manufacturing, travel, energy sector and inflation can also increase.
The domestic gas policy of the government in the year 2014 was said that prices of natural gas will be reviewed every six months. Under the scheme, the government will now review the domestic gas prices on April 1, 2019. The report of CARE says, "We believe that domestic gas prices may increase from current $ 3.36 / mmBtu to $ 3.97 / mmBtu for April 2019 to September 2019, i.e. growth of about 18%.
This rate in the rate can be good news for gas producers. This will increase the revenues of ONGC, Oil India, Vedanta, and Reliance companies, which make upstream gas exploration. But in the consumer's opinion, this will be bad news because it will make compressed natural gas (CNG) and PNG expensive in vehicles.
This will also increase the cost of generation of electricity, fertilizer production, and petrochemical production. Increasing the price of gas can also increase wholesale price based (WPI) inflation. Significantly, domestic gas prices can be fixed on the basis of natural gas prices in the US, UK, Canada, and Russia.
With the increase in the price of gas in the international market, the price of LPG has been increased on March 1, just three months after the domestic market. Non-subsidized LPG cylinders were priced at Rs 42.50 in Delhi and Rs 2.08 for the subsidy. There is a separate system for fixing LPG prices. According to the average international benchmark rate and foreign currency exchange rate, the price of LPG cylinders is fixed, on the basis of which the subsidy amount changes every month. On the other hand, about eighty percent of oil is imported in India. Internationally, crude oil is bought and sold according to the barrel. A barrel contains about 162 liters of crude oil.
