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Heart disease is the leading cause of death in the

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Domestic gas price rises 5% amid W Asia conflict

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Domestic gas price rises 5% amid W Asia conflict

New Delhi: The govt has raised the price of natural gas from state-run ONGC and Oil India Ltd’s legacy fields to $6.89 per unit (million British thermal units) for July from $6.41 as the ripples from a surge in oil prices following the Israel-Iran conflict hit home. But the actual increase in the price will be limited to 34 cents, or 5%, due to the price cap of $6.75 per unit, which will be the applicable rate from July 1, a govt notification said on Monday.Legacy gas is primarily consumed by city gas networks for supplying as CNG and PNG as well as fertiliser manufacturers. The increase will impact margins of CNG operators who depend on legacy gas meet 40%-50% of their requirement. But the jury is out whether they will pass on the burden to consumers by raising CNG rates or choose to sit out till the next gas price revision as crude prices are headed down. The fertiliser sector will not be impacted due to govt subsidy.





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