The federal government on Sunday reduce the worth of pure gasoline produced from tough areas like deep sea KG-D6 block of Reliance Industries, marginally to USD 9.87 per million British thermal unit consistent with softening of benchmark worldwide gasoline costs, an official notification mentioned.
Nevertheless, the worth of gasoline that’s used for making CNG for fuelling cars or piping to family kitchens for cooking functions will stay unchanged because of a value cap that’s set at 30 per cent lower than market charges similar to that paid to Reliance.
For the six-month interval beginning April 1, the worth of gasoline from deepsea and high-pressure, high-temperature (HPTP) areas has been reduce to USD 9.87 per mmBtu from USD 9.96, oil ministry’s Petroleum Planning and Evaluation Cell (PPAC) mentioned in a notification.
That is the third straight bi-annual discount in charges for tough fields. Value was for six months starting October 1, 2023 slashed 18 per cent to USD 9.96 per mmBtu from USD 12.12 for the April to September 2023 interval. Previous to that, the speed was a report USD 12.46 for October 2022 to March 2023.
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The federal government bi-annually fixes costs of the locally-produced pure gasoline — which is transformed into CNG to be used in cars, piped to family kitchens for cooking and used to generate electrical energy and make fertilisers.
Two totally different formulation govern charges paid for gasoline produced from legacy or previous fields of nationwide oil firms like Oil and Pure Fuel Company (ONGC) and Oil India Ltd (OIL), and for newer fields mendacity in difficult-to-tap areas, similar to deepsea.
Charges are fastened on April 1 and October 1 annually.
In April final yr, the formulation governing legacy fields was modified and listed to 10 per cent of the prevailing Brent crude oil value. The speed was, nevertheless, capped at USD 6.5 per mmBtu.
Charges for legacy fields at the moment are selected a month-to-month foundation. For April, the worth got here to USD 8.38 per mmBtu however due to the cap, the producers would get solely USD 6.5 per mmBtu, the PPAC mentioned.
The worth for tough space gasoline continues to be ruled by the previous formulation that takes a one-year common of worldwide LNG costs and charges at some international gasoline hubs with a lag of 1 quarter.
Worldwide costs had fallen in 2023 and so it is going to translate into decrease costs for tough fields beginning October.
India is aiming to change into a gas-based financial system with the share of pure gasoline in its main power combine focused to rise to fifteen per cent by 2030 from the prevailing degree of round 6.3 per cent. PTI ANZ TRB
(This report has been printed as a part of the auto-generated syndicate wire feed. Aside from the headline, no enhancing has been executed within the copy by ABP Stay.)
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