New Delhi: The worth of home pure fuel for Might has been set at $8.27 per metric million British thermal models (mmBtu), up from April’s $7.92, as per a notification by the Petroleum Planning and Evaluation Cell. This adjustment follows final month’s introduction of a brand new home fuel pricing formulation.
“The worth of home pure fuel for the interval of 1st Might 2023 to thirty first Might 2023 is notified as $8.27 per MMBTU on gross calorific worth (GCV) foundation,” mentioned the notification dated 30 April.
Nonetheless, the worth revision will not be anticipated to have an effect on piped pure fuel (PNG) and compressed pure fuel (CNG) costs, as fuel produced by state-run ONGC and Oil India from their nomination fields, primarily used for PNG and CNG provides, will stay on the ceiling value of $6.5 per mmBtu.
“For the fuel produced by ONGC/OIL from their nomination fields, the APM shall be topic to a ceiling of $6.5/MMBTU in GCV foundation for a similar interval,” it mentioned.
The Cupboard Committee on Financial Affairs (CCEA) final month accepted new fuel pricing tips, linking home pure fuel costs in India to world crude costs. Underneath the rules, pure fuel costs might be 10% of the month-to-month common of the Indian crude basket, which is a weighted common of Dubai and Oman (bitter) and Brent Crude (candy) oil costs.
CCEA additionally accepted a flooring value of $4 per mmBtu and a ceiling of $6.50 per mmBtu beneath the Administered Worth Mechanism (APM) fuel pricing. The transfer goals to develop pure fuel consumption, improve its share in India’s major power combine from 6.5% to fifteen% by 2030, and cut back the influence of rising worldwide fuel costs on Indian costs.
Worldwide fuel costs have remained excessive over the previous yr as a result of Russia-Ukraine warfare.
Earlier, home fuel costs had been decided ruled by tips accepted in 2014, which set costs for a six-month interval based mostly on the volume-weighted costs prevailing at 4 fuel buying and selling hubs – Henry Hub, Albena, Nationwide Balancing Level (UK), and Russia – for a interval of 12 months and a time lag of 1 / 4.
Following final month’s announcement of the brand new fuel pricing norms, PNG and CNG suppliers in India lowered their product costs, passing on the advantages to shoppers.
Up to date: 01 Might 2023, 01:30 PM IST