How to find quality stocks? | Stock Market Investing | Corporate Governance
CNG and PNG are expected to drop by Rs 6 per unit in Delhi. In Mumbai, CNG will be reduced by Rs 8 per kg, while PNG will be reduced by Rs 5 per unit. Consumers in Bengaluru will also get a benefit of Rs.6. The benefit varies in other cities with gas service as factors like local tax, domestic gas supplier’s share are considered.
Union Minister Hardeep Singh Puri said the new decision is a continuation of the schemes initiated by Prime Minister Narendra Modi to protect the interest of consumers by reducing the impact of rising international gas prices. The new guidelines are intended to ensure a stable price regime for domestic gas consumers. At the same time it provides adequate protection to producers from adverse market fluctuations by providing incentives to increase production. Hardeep Singh Puri wrote on Twitter.
The gas price will be revised monthly based on the Indian crude price instead of the current system of revision every six months, i.e. on 1st April and 1st October every year, based on the six-month rolling average of gas prices in global markets.
The limit will be valid for two years, after which it will be raised by 25 cents every year, Information Minister Anurag Singh Thakur said after the cabinet meeting. He said that the decision is aimed at protecting the interests of consumers and manufacturers.
The new formula also guarantees a 20% premium for increased production from fields awarded to ONGC and Oil India Limited. The premium aims to encourage technology induction, Thakur said.
Also Read: Have you reached the age of thirty? Reasons to own health insurance may be known
CNG and PNG prices have increased since the domestic gas price rose from $1.79 per unit in October 2020 to $8.57 per unit in October 2022 due to the increase in international gas rates. The new formula largely follows the recommendations of a committee headed by economist Keerthy Parekh, tasked with reviewing India’s fields pricing policy.
India meets 50% of its gas requirement through imports. The government aims to increase the share of natural gas in the country’s energy market from 6 percent to 15 percent by 2030.
Read Latest Business News and Malayalam News
