Cooking gas, CNG prices may possibly face a surge by next month

Natural gas price may surge by up to 18 per cent from April 2019, as per a CARE Ratings' report. The price surge is said to lead to a rise in the prices for the domestic cooking gas bill along with auto CNG prices. Accordingly, it is expected that it will indirectly lay an effect on manufacturing, travel, energy, and inflation.

As per the New Domestic Gas policy of 2014, which suggests revising natural gas prices every six months, the government may be revising domestic gas prices effective from 1 April 2019, according to the report. Along with this, the prices of natural gas produced in deep water and high-pressure high temperature may also be revised.

We believe the prices of domestic natural gas for the April 2019-September 2019 period will increase from the current $3.36/mmBtu to approximately, $3.97/mmBtu, resulting in an 18% increase," said a report by CARE Ratings.

The domestic gas prices are calculated by taking into consideration, the prices of natural gas in USA (Henry Hub), UK (New Balancing Point), Canada (Alberta Gas) and Russia (Russian Natural Gas).