Natural gas prices hiked 40% to record levels; CNG, PNG to cost more

This includes difficult and newer fields operated by Reliance Industries and partner BP in the KG basin

The government raised the prices of natural gas by 40 per cent to record levels on Friday. The decision, taken at the government's biannual exercise for fixing the rates for the next six months, will take effect from October 1. 

This would lead to a steep increase in higher rates for Compressed Natural Gas (CNG), and piped natural gas (PNG), which has in the last one year risen by over 70 per cent. 

The latest hike is the third increase in gas rates since April 2019 and comes on the back of firming benchmark international prices. The government had indicated prices of