For some time, the prices of petrol, diesel and CNG remained stable, but now there are indications that CNG prices may increase soon. The main reason for this is the increase in prices of natural gas (APM gas) produced by the government after two years.
APM gas prices rise
According to the Ministry of Petroleum and Natural Gas, the price of APM gas has been increased from $ 6.50 per MMBTU to $ 6.75 per MMBTU since 1 April 2025. This price will be effective till March 2026. The next year it will be increased by $ 0.25 per unit further.
APM gas is extracted from areas like Oil and Natural Gas Corporation (ONGC) and Oil India Limited (Oil) in India from areas which have been nominated by the government. This gas is mainly used in CNG, power generation and fertilizer manufacture.
Backgrounds of prices rising
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In April 2023, the central government accepted the recommendations of an expert committee to based on 10% of the monthly average import price of crude oil.
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At that time it was decided that there would be no change in prices for the next two years and then every year an increase of $ 0.25 per unit will be increased.
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This year’s 4% increase has been done under the same policy.
What will be the effect on the price of CNG?
Experts believe that the increase in APM gas prices may have a direct impact on CNG retail prices.
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The price of CNG can increase by Rs 2 to 3 per kg in the coming days.
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Currently, the price of domestic natural gas (APM) is $ 6.75 per MMBTU, which was earlier $ 6.50.
How was the price of gas fixed earlier?
Prior to April 2023, APM gas prices were fixed on the basis of average prices of four major international hubs every six months. This system was complex and was greatly affected by the fluctuations of global prices. The new system makes this process more stable and predictable.
These big rules have changed from 1 April 2025, know what will be affected by you
The post CNG prices may increase soon, the effect of increasing the price of domestic natural gas is first appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
