Lok Sabha Question No. 2630 (UNSTARRED), answered on 2023-03-16
Subject: Increasing CNG Prices
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Gomati Sai

## LOK SABHA

## UNSTARRED QUESTION NO. 2630 TO BE ANSWERED ON 16 MARCH, 2023

## Increasing CNG Prices

†2630. SHRIMATI GOMATI SAI:

## पेोलयम और ाक ृतक गैस मंी

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a) whether the prices of LPG cylinders and CNG gas have been increased by three folds in all the States of the country, including Chhattisgarh and it has caused heavy financial burden on the public and if so, the details thereof; and
- (b) whether the Government proposes to freeze the prices of LPG cylinders and CNG gas and if so, the details thereof and if not, the reasons therefor?

## ANSWER

## पेोलयम और ाक ृतक गैस मंालय म राय मंी ( ी रामेश ् वर तेल )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI RAMESWAR TELI)

- (a) & (b): India  imports  more  than  60%  of  its  domestic  LPG  consumption.  The  average Saudi Contract Prices (CP) on which the domestic LPG prices are based, increased from US$ 454/MT to US$ 693/MT during 2019-20 to 2021-22.  During 2022-23 the Saudi CP has further risen to US$ 790/MT for February 2023. However, the Government continues to modulate the effective  price  of  domestic  LPG.  Public  Sector  Oil  Marketing  Companies  have  suffered  huge losses  on  sale  of  domestic  LPG.  Public  Sector  Oil  Marketing  Companies  have  suffered  huge losses on sale of domestic LPG. To compensate these losses, the Government has recently paid a one-time compensation of Rs. 22000 crore to OMCs. The details of prices of domestic LPG as on 1st March 2022 and 1st March 2023 are given below:

| Price as on   |   Retail Selling Price (RSP) of Domestic LPG Rs./14.2 Kg Cylinder (Delhi) |   Retail Selling Price (RSP) of Domestic LPG Rs./14.2 Kg Cylinder (Raipur) |
|---------------|---------------------------------------------------------------------------|----------------------------------------------------------------------------|
| 01 March 2022 |                                                                     899.5 |                                                                        971 |
| 01 March 2023 |                                                                    1103   |                                                                       1174 |

Source: Petroleum Planning and Analysis Cell

Further, Government has started a targeted subsidy of Rs. 200 per 14.2 Kg cylinder for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries for upto 12 refills for year 2022-23.

Government of India has taken various initiatives to keep natural gas prices under check. While the  gas  prices  at  the  international  gas  indices  (JKM)  have  increased  by  up  to  228%  between January 2021 and February 2023, in India the CNG price rise (Delhi representative market) was restricted  to  about  83%.  To  reduce  the  impact  of  increase  in  international  gas  prices  on  CNG prices in India, Government has taken various steps, including increasing domestic gas allocation to about 250% of the allocation in 2013-14, diverting domestic gas from power and other nonpriority  sectors  to  meet  the  requirement  for  CNG(Transport)  and  PNG(Domestic)  segments, declaring CNG(T)/PNG(D) segment as the first priority for allocation of domestic natural gas, etc. The comparative prices of CNG for Indraprastha Gas Limited (NCT of Delhi) are given as under:

| Prices as on   |   CNG Prices (in Rs/KG) |
|----------------|-------------------------|
| 01.03.2022     |                   57.01 |
| 01.03.2023     |                   79.56 |

Source: Petroleum Planning and Analysis Cell

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