Fuel value up, cap to guard customers – Instances of India

NEW DELHI: Authorities on Thursday raised March value of pure fuel produced from home fields beneath legacy monetary and regulatory regimes by about 4% to $8.2 per unit (million metric British thermal items) however customers won’t be impacted due a $6.5 value cap within the present pricing mechanism.
The federal government had in April 2023 linked home fuel pricing to ‘Indian basket’ — or the combo of crude purchased by the Indian refiners after scrapping the sooner formulation based mostly on benchmark costs in gas-surplus markets such because the US, Canada, Europe and Russia. The revised formulation, based mostly on suggestions by a panel led by economist Kirti Parikh, set home fuel value at 10% of the month-to-month common of the Indian Basket within the earlier month, with a ground of $4 and a cap of $6.5 per unit.
The ground ensured minimal remunerative value for producers in a depressed market, whereas the cap protected customers resembling CNG and PNG customers from the complete affect of value spikes.