CNG and piped pure fuel costs may fall additional this festive season, with value of domestically produced fuel anticipated to come back down in October by about 20 per cent to lower than $2 per million British thermal unit. Sources within the authorities stated that Covid-19 has severely impacted demand situations out there and has additionally affected fuel costs globally. Fuel costs have fallen by over 50 per cent in previous couple of months and continued to stay suppressed.
This has paved the best way for additional discount in home fuel costs which might be revised twice yearly – on April 1 after which on October 1. Following international developments, costs had already fallen sharply in final two revision cycles and if the development continues, it could be third consecutive cycle of fuel value fall within the nation.
In April this yr, the value of pure fuel was minimize by 26 per cent, bringing it to $2.39 per MBtu.
Discount in fuel costs is sweet information for shoppers as it could have affect on CNG costs that’s used for transportation and in addition piped fuel provides to households. Decrease fuel costs would additionally decrease the fee for energy tasks being run on home fuel and fertiliser crops.
However they spell dangerous information for state-owned oil and fuel producer ONGC as it could imply additional suppressed margins and losses. The corporate is about to lose near Rs 6,000 crore on low fuel costs this yr, brokerages have stated.