Government New Gas Pricing Formula, CNG And PNG To Cost 10% Less

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Government New Gas Pricing Formula, CNG And PNG To Cost 10% Less

The Indian government has announced a new gas pricing formula, which will result in a 10% reduction in the prices of compressed natural gas (CNG) and piped natural gas (PNG). The new pricing formula, called the Gas Exchange Trading Hub, will be implemented from April 1, 2023, and is expected to bring relief to millions of households and businesses that use natural gas.

The Gas Exchange Trading Hub is a new mechanism that will allow buyers and sellers of natural gas to trade gas on a common platform, similar to the stock exchange. The price of natural gas will be determined by the market, and the government will not interfere in the pricing mechanism.

The new pricing formula is expected to benefit consumers in several ways. Firstly, it will result in a reduction in the prices of CNG, which is used as fuel for vehicles. This will lead to a decrease in the running costs of vehicles, resulting in savings for vehicle owners.

Secondly, the new pricing formula will also reduce the prices of PNG, which is used as a cooking fuel in households and as a fuel in industries. This will bring down the costs of cooking and manufacturing, resulting in savings for households and businesses.

The government's decision to implement the Gas Exchange Trading Hub is being seen as a major reform in the natural gas sector. The new mechanism is expected to bring transparency and efficiency in the pricing of natural gas and will attract more investment in the sector.

The government has also stated that the new pricing formula will not affect the prices of natural gas produced by government-owned companies, such as Oil and Natural Gas Corporation (ONGC) and Gas Authority of India Limited (GAIL). The prices of natural gas produced by these companies will continue to be fixed by the government.

In conclusion, the new gas pricing formula announced by the Indian government is a welcome move that will bring relief to millions of consumers who use natural gas. The reduction in the prices of CNG and PNG is expected to result in significant savings for vehicle owners, households, and businesses. The implementation of the Gas Exchange Trading Hub is a major reform in the natural gas sector, and is expected to bring transparency and efficiency in the pricing of natural gas.

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