Ahmedabad: Adani Total Gas Limited (ADTL) has reduced CNG price by Rs 8.13 per kg and PNG price by Rs 5.06 per SCM. According to reports, new rates have been applied from 12 am on April 8. ATGL’s decision comes a day after the Union Cabinet implemented a new formula for fixing domestic gas prices.
Recently, after the cabinet meeting, talking to media Union Minister Anurag Thakur said, ” The price of domestic gas has been now linked with imported crude instead of international hub gas and the price of domestic gas will be 10% of the international price of the Indian crude basket now onwards. The price will be reviewed and decided on a monthly basis.
Information and Broadcasting Minister Anurag Thakur, giving further information, added, ” The natural gas, produced from conventional fields (APM), will now be linked with crude oil prices like US-Russia. Earlier the prices were fixed on the basis of the price of gas. Now the price of APM gas will be 10 percent of the price of crude oil in the Indian basket. However, this cost will not exceed $6.5 per million British thermal unit (MMBtu). The base price has been fixed at $4 per MMBtu. The current price of gas is $8.57.
Recommendation to cover under GST
The Parikh Committee has recommended to bring gas under the ambit of GST. It has been recommended to impose a general tax ranging from 3 percent to 24 percent on gas. This will help to promote the gas market.