Government diverts gas from industries to city gas to moderate CNG, piped cooking gas rates
News: As per media sources, the government on Wednesday diverted some natural gas from industries to city gas operators in a bid to check spiralling CNG and piped cooking gas prices. The oil ministry in a notification issued on Wednesday amended an earlier order to increase allocation of domestically produced gas to city gas operators. The allocation for city gas operators like Indraprastha Gas Ltd and Mahanagar Gas Ltd has been increased from 7.5 mmscmd to 20.78 mmscmd.
View: The increased allocation will meet 94 per cent of the demand for CNG supplies to automobiles and piped cooking gas to households in the country. Under the previous dispensation, GAIL would average out price of domestically available gas with the LNG and supply fuel at a pooled price. This price for current month came to $ 10.58/mmbtu. After the amendment, the gas price will come down to $ 7.5/mmbtu.