Monday, November 29, 2021

ਵਾਹਿਗੁਰੂ

spot_img
yes punjab punjabi redirection

Lokan Da Channi

Channi 8

Bijli Bill

36000

Sada CM

Hunarmand

Mera Ghar

Kisan Karza

Markfed Sept to Nov

Innokids Green

After oil, gas price may see surge upsetting CNG, PNG rates

- Advertisement -

New Delhi, Oct 24, 2021- After fuel price surge, prices of gas used for cooking and transportation are expected to soar this year putting consumers in India at the risk of inflated CNG and PNG rates.

As per an assessment of gas market done by ICICI Securities, prices in gas futures market is estimated to rise by US$4.1/mmbtu to US $7.35/mmbtu in H1FY23 and by another US$3.6/mmbtu (49 per cent) to US $10.95/mmbtu in H2FY23.

This would mean that three main players supplying CNG and PNG — Green Gas (GGL), Mahanagar Gas (MGL) and Indraprastha Gas (IGL) would need to hike CNG prices by 50-56 per cent in April-October, 2022 to fully pass on APM gas price rise to keep their margins at lofty levels.

APM gas price was at US $2.3-3.8/mmbtu in FY17-FY22 and bottomed out at US $2/mmbtu in H1FY22. It is up US $1.22/mmbtu (62 per cent) to US $3.22/mmbtu in H2FY22.

What is interesting is that gas suppliers to CNG and PNG markets have made lofty margins in the pandemic period due to non revision of piped natural gas and compressed natural gas prices during the inadequacy when the cereal gas prices had fallen globally due to demand compression and lockdowns.

Since Q2FY20, gas cost fall for CNG is Rs 5.7/scm vs Rs 1.3-2.2/scm CNG price cut by GGL, MGL and IGL. Hence, their margin was up 21-84 per cent (Rs 1.4-4.0/scm) to Rs 7.9-13.9/scm in Q1FY22 from Rs 4.3-9.9/scm in Q2FY20. In fact, CGD margins are up 44-130 per cent since FY14, and 21-84 per cent since December, 2019 as gas cost fall has not been passed on.

CGD players have not fully passed on the fall since December 2019 and in fact, on occasions, hiked prices to boost margins to make up for covid-caused volume plunge, the brokerage report said. (Agency)

Subscribe to YesPunjab Telegram Channel & receive important news updates

- Advertisement -

Yes Punjab - TOP STORIES

Punjab News

Sikh News

Transfers, Postings, Promotions

- Advertisement -spot_img

Stay Connected

20,369FansLike
112,995FollowersFollow

ENTERTAINMENT

National

GLOBAL

OPINION

Taliban Fighters

The ‘Good’, the ‘Bad’ and the ‘Deobandi’ Taliban – by Asad Mirza

While an effort to classify the Taliban into good and bad is rather easy, the underlying reasons to classify them as Deobandi becomes a...
Interest Rates

When you (and everyone else) expect interest rates to rise – by Suyash Choudhary

The last few weeks have been notable from a global rates environment standpoint, particularly in developed markets. Markets across many such geographies have brought...
Diwali Diya

Diwali resolution we need in Covid times for a breathable future – by Dr Rajat Arora

The much-awaited festival of lights stands at our threshold -- the harbinger of peace and prosperity. With the economy coming back on track after...

SPORTS

Health & Fitness

Device alerts risk of heart attack

This device alerts risk of heart attack due to over exercising

New Delhi, Nov 28, 2021- There have been reports of sudden death of some film actors and other big personalities. Despite being healthy and young, these deaths happened due to cardiac arrest. Experts say a big reason for this is excessive exercise. IIT scholars have now come up with an innovative device that will raise an alarm about the risk...

Gadgets & Tech