GAIL cuts CNG, PNG prices by upto Rs 7 per unit

Just a few days after the government changed pricing formula for natural gas, GAIL Gas Limited on Sunday announced upto Rs 7 per unit reduction in CNG and PNG prices. The price cut in Karnataka, which is going to polls next month, is higher than other parts of the country.

Compressed natural gas (CNG), which is used for transport, has become cheaper by Rs 7 per kg in Karnataka, GAIL Gas Limited, the city gas arm of GAIL (India) Limited, said in a statement on Sunday.

In Sonipat also, CNG price has been cut by Rs 7 per kg. In other parts of the country CNG price has been lowered by Rs 6 per kg. The revised price is effective from April 9, 2023.

The price of piped natural gas (PNG), which is used for household cooking, has been lowered by Rs 7 per standard cubic metre (SCM) in Bengaluru and Dakshin Kannada regions. In other parts of the country, where the company operates, the price has been reduced by Rs 6 per SCM.

The announcement comes a few days after the central government changed the pricing formula of natural gas. As per the new guidelines, the price of natural gas like CNG and PNG will be linked to the monthly average of Indian crude basket. Under the old system it was linked to the prices in surplus nations like the United States, Canada and Russia.

GAIL Gas Limited has cut domestic PNG prices in Bengaluru and Dakshin Kannada by Rs 7 per SCM to Rs 51.50 per SCM.

For Dewas, Meerut, Sonipat, Taj Trapezium Zone, Raisen, Mirzapur, Dhanbad, Adityapur and Rourkela region the new effective price of domestic PNG is Rs 52.50 per SCM. GAIL Gas Limited operates in 16 geographical areas across the country.

CNG price has been cut to Rs 82.50 per kg for Bengaluru & Dakshin Kannada. The revised CNG price stands at Rs 85 per kg for Meerut and Sonipat; Rs 92 per kg for Dewas, Taj Trapezium Zone and Dehradun; Rs 87 per kg for Mirzapur, Rs 91 per kg for Raisen, Dhanbad, Adityapur, Puri and Rourkela.