New Delhi: The federal government has elevated the value of pure gasoline to $8.60 per metric million British thermal unit (mmBtu) for September, from $7.85 in August.
Nonetheless, the value of the gasoline from the nominated gasoline fields of ONGC and Oil India has been saved unchanged on the worth cap of $6.5 per mmBtu.
“The value of home pure gasoline for the first September 2023 to thirtieth September 2023 is notified as $8.60/MMBTU on gross calorific worth (GCV) foundation,” stated the notification dated 31 August.
The value of home pure gasoline have been linked to the India crude oil basket since April and is modified each month.
The rise has come within the backdrop of the rise in world crude oil costs on provide considerations. At the moment, the November contract of Brent is buying and selling at $87.06 per barrel, greater by 0.26% from its earlier shut.
In April, the cupboard committee on financial affairs (CCEA) had permitted the brand new gasoline pricing pointers, paving the way in which for linking home pure gasoline costs in India to world crude costs. Underneath the permitted pointers, the value of pure gasoline is calculated at 10% of the month-to-month common of the Indian crude basket, a weighted common of Dubai and Oman (bitter) and Brent Crude (candy) oil costs.
The Cupboard additionally permitted a flooring worth of $4 per mmBtu and a ceiling of $6.50 per mmBtu beneath the Administered Worth Mechanism (APM) gasoline pricing.
In response to the federal government, the brand new pricing coverage is aimed toward increasing the consumption of pure gasoline and reaching the federal government’s goal to extend the share of pure gasoline within the major vitality combine in India from the present 6.5% to fifteen% by 2030.
The brand new pricing coverage got here within the backdrop of excessive worldwide gasoline costs. Beforehand, home gasoline costs had been decided based mostly on the home gasoline pricing pointers permitted by the federal government in 2014. The 2014 pricing pointers supplied for the setting of home gasoline costs for a six-month interval based mostly on the volume-weighted costs prevailing at 4 gasoline 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.
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Up to date: 01 Sep 2023, 12:17 PM IST
Supply: Live Mint