CNG and PNG prices to fall, authorities approves Parikh committee’s recommendations

The central authorities has permitted the recommendations of the Kirit Parikh Committee on residence pure gas prices. The Union Cabinet, chaired by Prime Minister Narendra Modi, has permitted the model new formulation for fixing the price of residence pure gas.

With this authorities selection, the pricing of fuels like PNG (piped pure gas) and CNG (compressed pure gas) is susceptible to decrease. The two residence pure gas prices are reviewed by the federal authorities yearly. However, there was no modification in gas prices on April 1, 2023, given that authorities was nonetheless to resolve regarding the Parikh Committee’s recommendations.

The Kirit Parikh Committee has actually helpful that the federal authorities must reduce excise obligation on CNG until a name is taken to convey pure gas beneath GST.

The Kirit Parikh Committee has moreover steered the federal authorities to impose GST on pure gas. The agency proposes that it must be with the states’ permission. In this case, the states ought to pay the Center for any losses incurred over a interval of 5 years with a view to execute it.

Abolishing the three-year petrol value ceiling is one different recommendation made by the Kirit Parikh Committee. The Committee has moreover steered that the pricing range for pure gas generated from the nation’s earlier gas reserves be set at $ 4 to $ 6.5 per unit.