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| By Samudranil Mukherjee |
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Thursday, May 20, 2010 (09:56:19) |
| Tags : India, Mumbai, Delhi |
Life in India to get more expensive after rise in gas prices |
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| New Delhi, May 20: Looks like things are going to get even pricier in India after the central government has raised the prices of state owned gas in Mumbai and Delhi by more than two times. Households in these two cities are expected to bear increased cooking gas prices in addition to transportation expenses. To top it all electricity costs across India would be going up as well. However, the extent would not be comparable to the rise in prices of cooking gas or fuel.
The Indian government has increased the costs of state produced gas, which is provided to Oil India and Oil and Natural Gas Corporation, to $4.20 on a per unit basis. The previous price was $1.79. The decision, which came sans any bidding, has been taken so that these companies are able to retrieve their operational expenses. The new prices would also be applicable for the offshore field operated at Andhra Pradesh by Reliance Industries Ltd.
As per calculations this decision would lead to a rise of Rs. 6 per kilogram of Compressed Natural Gas in Delhi. This price would also include wheeling expenses and taxes. The impact is expected to be the same in Mumbai as well. As per regular cubic metre, the price of piped cooking gas, used in kitchens, could go up by Rs. 3.50 for every unit. |
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