Ahmedabad: Adani Gas has reduced the price of CNG by up to Rs 8.13 per kg, and PNG by up to Rs 5.06 per cubic meter in the state, effective from midnight on 7th April, following the central government’s policy to set the administered price of gas.

This is after the government changed the pricing formula of natural gas, which is converted into CNG for running automobiles and piped to household kitchens for cooking purposes.

In Ahmedabad, the price of CNG has been reduced by Rs 6 per kg, and the price of PNG has been reduced by Rs 4 per standard cubic meter. The new price of PNG in Ahmedabad is Rs 49.83 per standard cubic meter, down from Rs 53.90, while the new price of CNG is Rs 73.29 per kg, down from Rs 79.34. This price reduction will benefit 700,000 homes using PNG.

Adani Gas has also reduced the price of PNG for industries by Rs 3. In Vadodara, the price of CNG has been reduced to Rs 72.03 per kg, down from Rs 79.33, and the price of PNG has been reduced to Rs 46.84 per cubic meter, down from Rs 91.90.

Union government on April 6th revised its domestic gas pricing guidelines, linking them to the Indian crude basket .

The new guidelines came into effect from today, and will apply to gas produced from nomination fields of ONGC/OIL, New Exploration Licensing Policy blocks, and pre-NELP blocks.

The price of natural gas from these fields will be 10% of the monthly average of the Indian crude basket, and will be determined on a monthly basis. Gas produced by ONGC and OIL from their nomination blocks will be subject to a floor and ceiling price. The government hopes that the new pricing system will incentivize ONGC and OIL to increase their investments in the upstream sector, leading to greater natural gas production and reduced import dependence. The goal is to increase the share of natural gas in India’s primary energy mix from 6.5% to 15% by 2030.

This decision was taken with the expectation of significantly reducing the prices of piped natural gas for households and compressed natural gas for transportation, as well as reducing the burden of fertilizer subsidies and supporting the domestic power sector. DeshGujarat