Notwithstanding the uproar over the recent hike in rail fares, a volley of hikes in the price of fuels may soon come your way with the government set to shortly announce the new price of domestically produced natural gas.
Hectic parleys are on at the topmost level in the government to decide upon the new price of natural gas against the UPA government's proposed price of $8 per unit, fixed using the Rangarajan panel formula.
"The clarity on gas prices should emerge in a day or two," said a senior official in the petroleum ministry. Indications are that the new price will be close to $6 per unit. At present domestic gas is priced at $4.2 per unit.
"The likely impact will be around 10-11 paise per unit on aggregate basis...it will vary state to state, with maximum impact on Delhi at 45 paise a unit as it consumes substantial gas based power," a industry source told HT.
Any increase in gas prices will directly impact electricity rates, CNG (used as a auto fuel in buses and taxis in metros and other cities) and PNG (or piped gas coming into kitchens) prices besides pushing up food prices as the cost of fertiliser using gas as an input will also go up.
With every one dollar increase in the price of domestic gas, the estimated increase in power rates, CNG and PNG is about 45 paise per unit, Rs 2.8 per kg and around Rs 1.9 per standard cubic metre respectively.