Natural gas prices in Aprile are likely to decline by 25%

New delhi date. February 23, 2020, Sunday

There are claims that natural gas prices in the country could drop by 25 percent from April. Globally, as gas prices are falling, the impact will be seen in India. If this is reduced then claims of CNG, PNG and electricity become cheaper. However, the month may still have to wait.

As it is likely to decline, the month of April may happen and no official announcement has been made by the government or agencies yet. There is a possibility that this will be announced on April 1st. According to a report, ONGC, Oil India Limited could reduce natural gas prices by six months on 1st April.

Currently the price per British thermal unit is $ 3.23 and it may drop to $ 2.5. This is thought to be the second decline in six months. The 25 percent reduction in prices is going to be the cheapest natural gas in two and a half years.

At the same time, there are signs of a drop in the price of gas produced from the default field. However, what is going to decline may be changed every six months. People who get PNG from the pipeline will also benefit. At the same time, ONGC's revenues could fall by Rs 3,000 crore due to price reductions.

Natural gas is used in the production of urea and 70% of the total cost is used in urea production. There are reports that CNG may also be cheaper as natural gas is used for CNG production.

In addition, the price of gas found in pipes useful for cooking in homes can be reduced. However, the decline could have an impact on the revenues of ONGC and Reliance Industry.