New Delhi: The price of natural gas has been increased by 62 per cent on Thursday.
Gas is converted to CNG for vehicles, and is directly used to produce electricity and make fertilizers. Now, the price stands at USD 2.90 per million British thermal unit. It was USD 1.79 earlier. The new price will remain valid for the next six months.
The gas produced from deep sea such as Reliance’s Krishna Godavari (KG) basin will be priced higher at USD 6.13 per mmBtu.
CNG and piped gas are expected to see a 10-11 per cent rise in prices.
The price changes for fertilizer is not likely to affect the consumer as government subsidizes it. Similarly, electricity costs will be affected as currently power from gas accounts for very little of the total mix.