In what may appear as a good news for many, you can all expect the prices of natural gases like piped natural gas (PNG), LPG, cooking gas and CNG to fall down soon.
Lets see what all changes are yet to come and what you can expect.
How Much Can You Expect the Changes to be?
The natural gas prices change ever six months, which means they are revised regularly in this half-yearly cycle.
The changes are conducted on April, followed by six months later, on October.
So from what we know, the revised price of natural gas set for October is currently set at $1.90 – $1.94 per million British thermal units (MMBtu).
This currently revised price bracket for the October half is the lowest registered natural gas price set in more than a decade’s period.
Why is the Fuel Price Falling?
As mentioned above, the prices of natural gas shall be cut down substantially.
This is because the countries responsible for exporting natural gase, are said to change their benchmark rate.
They shall revise the oil prices to lower amounts, to $1.94 per MMBtu.
If these lowered prices are implemented successfully, it will be the third rate cut in prices of natural gas in just a year.
Even in April, these prices were lowered by 26 cents, bringing the amount to $2.39 per MMBtu.
Government’s Idea to Lower Gas Prices
As per the earlier regime, oil field companies like ONGC and Oil India, used to receive $3.818 per unit for gas production.
This amount, along with an additional 10% royalty would rise up the price to $4.20, which was available for consumers.
The Congress approved this regime, however the NDA government cancelled the implementation, as this would raise gas prices.
Instead, the government came up with a new idea.
In this new regime, gas was priced at $5.05 per unit, in the 1st revision and his price was hen reduced in the next revision.
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