Page 5 - Cng

Revised gas pricing formula to aid profit stability for producers: Fitch

The government's decision to limit prices of domestic natural gas from legacy fields to between USD 4-6.5 per million British Thermal Unit (mmbtu) will support margins for city gas distributors, encourage the use of gas, and reduce cash flow volatility for upstream producers, Fitch Ratings said on Wednesday. "We expect a partial pass-through of the lower administered price mechanism (APM) gas prices, at which domestic upstream producers supply gas to city gas distributors, in the prices of compressed natural gas (CNG) and domestic piped natural gas (PNG) to add to the distributors' margins in the near term," it said in a statement. City gas retailers like Indraprastha Gas Ltd and Adani Total Gas Ltd last weekend announced Rs 6-8 cut in CNG and PNG prices, reflecting the cut in input gas prices. The APM price under the new regime was calculated at USD 7.92, but is capped at USD 6.5 for the rest of April, 24 per cent below levels in October 2022-March 2023. "We expect such price cuts

CNG penetration to rise to 18% by 2027 from 11% in 2022, says Icra

ICRA said that the new gas pricing policy led to CNG prices declining to levels seen nearly a year ago, thereby providing relief to the consumers

Consumer prices of gas tumble as utilities slash PNG and CNG prices

Days after new gas pricing norms adopted by Centre, city gas distribution companies across the country announce price cuts for PNG & CNG

GAIL Gas Ltd announces reduction in prices of CNG, PNG by upto Rs 7

GAIL Gas Ltd, the city gas arm of the nation's largest gas firm GAIL (India) Ltd, on Sunday announced a reduction of up to Rs 7 in the prices of CNG and piped cooking gas following a reduction in input gas price. GAIL Gas cut the price of the gas that households received through piped natural gas, or PNG, by Rs 7 per standard cubic metre in Bengaluru and Dakshin Kannada and by Rs 6 per scm in other cities where the company operates. Similarly, CNG price has been cut by Rs 7 per kg in Karnataka and by Rs 6 in other areas, the company said in a statement. "GAIL Gas Limited is also steering its pricing mechanism in line with the Government of India's guideline to pass on new domestic gas pricing benefits to its customers and has announced a substantial reduction in prices with effect from April 9, 2023," it said. The new effective domestic PNG prices are Rs 52.50 per scm in Dewas, Meerut, Sonipat, Taj Trapezium Zone, Raisen, Mirzapur, Dhanbad, Adityapur and Rourkela, and Rs 51.50 per

CNG, piped cooking gas price down by up to Rs 6 in Delhi, 1st cut in 2 yrs

The prices of CNG and cooking gas piped to household kitchens in the national capital on Saturday were cut by up to Rs 6 - the first reduction in two years - after the government changed the pricing formula of natural gas. CNG in the national capital territory of Delhi will now cost Rs 73.59 per kg, down from Rs 79.56, Indraprastha Gas Ltd (IGL) - the firm which retails CNG and piped cooking gas in the city, said in a Twitter post. Simultaneously, the rates of gas piped to household kitchens, called piped natural gas (PNG), has been cut to Rs 48.59 per standard cubic metre in Delhi from Rs 53.59 per scm, according to IGL. The reduction follows an over 80 per cent increase in prices in two years. CNG prices were hiked on 15 occasions between April 2021 and December 2022. Since April 2021, CNG prices have increased by Rs 36.16 per kg, or 83 per cent, according to data compiled by PTI. CNG prices were last hiked on December 17, 2022. Similarly, PNG rates have increased by 10 times ..

Domestic gas price for April at $7.92, price for consumers capped at $6.5

The government on Thursday amended the domestic pricing model of natural gas in line with the recommendations of the Kirit Parikh committee on gas pricing

Govt imposes gas price caps, accepts key suggestions of Kirit Parikh panel

Centre accepts all major recommendations of Kirit Parikh committee, imposes price caps

Gas sector confident of smooth transition as it awaits new pricing rules

Officials said existing APM gas prices have been left broadly unchanged till Sept 31 as a temporary arrangement

Stepping on the gas: CNG fuel of choice in green mobility quest

Though EVs have fast gained traction; CNG vehicle sales are up 82% in 5 years

Cabinet to impose price caps on gas to stave off rising rates to $10.7

The Union Cabinet is likely to soon consider imposing caps or a ceiling on price for majority of natural gas produced in the country to keep input costs for users ranging from CNG to fertilizer companies in check, sources said. The government bi-annually fixes prices of locally produced natural gas -- which is converted into CNG for use in automobiles, piped to household kitchens for cooking and used to generate electricity and make fertilisers. Two different formulas govern rates paid for gas produced from legacy or old fields of national oil companies like Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL), and that for newer fields lying in difficult to tap areas such as deepsea. The global spurt in energy prices post Russia's invasion of Ukraine have led to rates of locally produced gas climbing to record levels - USD 8.57 per million British thermal unit for gas from legacy or old fields and USD 12.46 per mmBtu for gas from difficult fields. These rates are due to

Mahanagar Gas' Unison Enviro acquisition lights up its growth prospects

Tailwinds for the industry in the form of decline in gas prices are also near-term positive

Tata team arrives for inspection after BEST took 400 CNG buses off road

Mumbai's civic transport body BEST on Thursday said the nearly 400 CNG-run buses which were taken off roads after three recent incidents of fire will be back in service only after a written assurance of safety is received from manufacturer Tata Motors. A team of TATA Motors Engineering arrived in the city from Lucknow on Thursday and is re-examining all these buses for compliance of safety standards, BEST said in a statement. Once they complete examination of safety parameters and give necessary clearance and written commitment and assurance of safety norms compliance, these buses will be put to service, it said, adding that the exercise is likely to be completed in six or seven days. On Wednesday evening, BEST undertaking announced taking 400 leased buses of M/S Mateshwari Limited off roads after a third incident of a CNG bus catching fire within one month. The 400 leased CNG buses of Mateshwari operate on around 40 routes, BEST sources said. Commuters faced a lot of inconvenien

Mumbai transport takes 400 buses off roads as 3 CNG buses catch fire

Mumbai's civic transport body BEST on Wednesday said it was taking 400 leased buses off roads after three incidents of these buses catching fire were reported within one month. A bus of the Brihanmumbai Electric Supply and Transport (BEST) undertaking was completely gutted in fire in suburban Andheri earlier in the evening. No one was injured in the incident, officials said. In view of these incidents involving TATA CNG buses operated by M/S Mateshwari Ltd, BEST has decided to take all 400 buses off roads till the OEM (original manufacturer) and operator take necessary corrective measures to ensure that such incidents do not happen in future, said BEST general manager Lokesh Chandra in a statement.

CNG, EVs, hybrid vehicles to comprise 30% of total auto sales: ICRA

CNG, EVs and hybrid vehicles may grab up to 30 per cent share in total auto sales in next five years even as petrol cars are likely to dominate passenger vehicle volumes in medium-term, a report said on Tuesday. Demand for Electric Vehicles (EVs) has increased exponentially in the last two years with the government's push, increasing awareness, and new launches, domestic rating agency Icra said in its report. However, the share of EVs in the overall PV (passenger vehicle) industry remains low, at 1 per cent currently, it stated. On the other hand, CNG vehicles have also gained prominence in recent years, aided by favourable running costs, improving penetration of CNG dispensing stations across the country, and enhanced product offerings by OEMs, Icra said and added, lower emissions in CNG vehicles would also help OEMs (original equipment manufacturers) comply with the impending Corporate Average Fuel Economy (CAF) norms. Noting that a cohesive approach from all stakeholders is ...

MGL slashes CNG price by Rs 2.50 per kg; leaves PNG prices unchanged

After nearly half a dozen times of hikes, the city gas utility Mahanagar Gas on Tuesday announced a reduction of Rs 2.50 per kilogram to Rs 87 a kg in the price of compressed natural gas (CNG), effective from Wednesday. Mahanagar Gas Ltd (MGL), however, left the price of cooking gas PNG unchanged. Since April 6, the price of CNG had gone up by Rs 29.50 per kilogram and that of piped natural gas (PNG) for residential use by Rs 18.50 at Rs 54. CNG price on November 4, 2022 had peaked at Rs 89.50 per kilogram and that of PNG at Rs 54 a kg. The state-owned company said the marginal cut in prices is in anticipation of the increased allocation of domestically-produced natural gas from high pressure-high temperature areas to distribution entities by the oil ministry, which lowers its input gas cost. After this reduction, the retail price of the fuel will come down to Rs 87 per kg in and around Mumbai, MGL said in a statement. This is the first price reduction since the second week of Ap

IGL Q3 net profit drops 11% at Rs 334 cr on holding CNG, piped gas prices

Indraprastha Gas Ltd, the firm that retails CNG and piped cooking gas in the national capital and other cities, reported 11 per cent drop in third quarter net profit after it held retail prices despite rise in input cost. Consolidated net profit of Rs 334.06 crore in October-December 2022 is compared with Rs 374.76 crore a year back, according to the company's filing with stock exchanges. The firm saw more than doubling of the cost it incurs on procuring natural gas, which is converted into CNG for sale to automobiles and piped to household kitchens for cooking purposes. Revenue from operations soared to Rs 4,089.03 crore in the third quarter of current fiscal year from Rs 2,438.48 crore in the year-ago period. "For the quarter ending December 2022, IGL registered an overall sales volume growth of 6 per cent over the corresponding quarter in the last fiscal, with the average daily sale going up from 7.66 million standard cubic meters to 8.12 million standard cubic meters per day,"

The gas paradox: Govt encouraging huge investment to push demand

But imposing policies that deter domestic exploration and production

Environment-friendly CNG replaces diesel as fuel on boats in Varanasi

Noisy and polluting boats on the Ganga river are now plying on environment-friendly CNG as part of a plan to cut noise and air pollution on the holy river. As many as 583 boats already have CNG engines and plans are afoot to replace the entire fleet of boats operating on banks of the holy city of Varanasi with environment-friendly fuel, Oil Minister Hardeep Puri said on Sunday. These boats are being supplied CNG from India's first floating CNG station built by GAIL at Namo Ghat. "In July last year Prime Minister had desired that boats on holy Ganga should be run on CNG. Against the target of 500 boats, 583 have already switched to CNG and we are working to get 2,000 boats to convert," he said. To promote the fuel, a race of CNG-run boats was organised on banks of this holy city. Compared to diesel-fuelled boat engines, CNG engines produce less pollution and do not emit harmful gases like sulphur dioxide. CNG engines are also much quieter, thereby minimising the adverse effects the

Adani firm hikes CNG price by Re 1 in Gujarat; to cost Rs 80.34 per kg

Private player Adani Total Gas Limited hiked the price of compressed natural gas (CNG) in Gujarat by Re 1 per kilogram effective from Monday. This has taken the price from Rs 79.34 to Rs 80.34 per kilogram, said Arvind Thakkar, president of Federation of Gujarat Petroleum Dealers Association. The hike by Adani Total Gas Limited comes days after state-run Gujarat Gas raised the price of CNG by nearly Rs 3.5 per kg, Thakkar added.

Assam CM flags off 100 CNG buses, inaugurates 1st green fuel station

Assam Chief Minister Himanta Biswa Sarma on Sunday flagged off 100 new CNG-run buses, as part of the Smart City Mission. He also inaugurated the city's first CNG fuel station. The CM said the launch of the CNG-run buses and the inauguration of the fuel station were decisive steps for "gradual but firm mitigation" of the impacts of climate change and global warming. The CNG buses were gifted by Guwahati Smart City Ltd to Assam State Transport Corporation. The passenger vehicles are equipped with air-conditioning, fire-detection, global positioning systems and several other features, and will be operated by ASTC. Noting that excessive use of fossil fuel, such as petrol and diesel, is the prime reason for global warming, the CM said the carbon emission from the use of such energy is creating climatic imbalances in many parts of the globe, including Assam. It is important that "all must unite to mitigate the impacts of climate change and work out a long-term and permanent solution",