How will CNG prices be determined in India?

The Compressed Natural Gas (CNG) prices in India will be determined by the government of India. The domestic prices of CNG will be based on the global prices of the natural gas which India imports from abroad. Any rise or dip in the global natural gas will have a simultaneous effect on domestic CNG rates in India.

Will a new price mechanism reduce CNG and PNG prices?

The Union Cabinet has tweaked the pricing guidelines for natural gas which is expected to bring down the rising prices of CNG and piped natural/cooking gas (PNG) in the country. The new mechanism is expected to reduce the price for CNG and PNG by approximately 10 percent.

What is the new pricing method for natural gas in Delhi?

The new pricing method will be imposed from April 8, 2023. It is expected to reduce the current price of CNG in Delhi from Rs 79.56 per kg to approximately Rs 73.59 per kg. The Union Cabinet has tweaked the pricing guidelines for natural gas which is expected to bring down the rising prices of CNG and piped natural/cooking gas (PNG) in the country.

Why is LNG more expensive than CNG?

Liquified natural gas (LNG) is six times denser than CNG, meaning it requires less storage space than CNG. But it is also more expensive because it needs to be cooled to -260°F to turn it into a liquid. LNG also evaporates quickly, and passenger vehicles are not driven for sufficient durations to make up for the loss due to evaporation.