Inflation affects the government’s campaign to control pollution, estimates of slowdown in consumption of natural gas due to high prices
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Fitch Ratings has said that the jump in domestic gas prices and increased LNG rates may slow down the pace of adoption of the eco-friendly fuel. The government has more than doubled the price of gas from domestic fields for the half year beginning April.
natural gas ,Natural GasThe government’s efforts to switch to eco-friendly fuels have suffered a setback due to high prices. Fitch Rating (Fitch Ratings) has estimated that contrary to efforts to increase consumption of natural gas, gas consumption in this financial year (Gas Consumption) growth may be lower than previous estimates, according to the report, increasing gas price has adversely affected its demand. Fitch Ratings has said that the jump in domestic gas prices and increased LNG rates will lead to adoption of eco-friendly fuel. Speed ​​may be slow. The government has more than doubled the price of gas from domestic fields to $6.1 per million British thermal unit for the half-year beginning April.
Fitch cuts gas consumption growth forecast
The rating agency has said in its report that we estimate that gas consumption in India can grow at the rate of 5 percent in FY 2023, which is less than our previous estimate of 7 percent growth, according to the report recently. This estimate has come down due to increase in domestic gas prices and LNG prices. According to the agency, we believe that due to this the shift towards natural gas will be slower than before. Domestic gas production meets only half of the current consumption and to meet the remaining half, it is imported as liquefied natural gas. However, Fitch said the increase in prices could lead to an increase in revenue from the gas authority’s natural gas marketing segment. But the continuation of increase in LNG prices will affect the pace of growth of gas consumption in the country.
Trying to triple gas consumption by 2030
According to GAIL’s plan released at the end of last year, efforts are being made seriously to increase the consumption of natural gas in the country and the target is to increase it to about three times from the current level by 2030. GAIL has set a target of 550 million SCM per day of consumption by the end of the decade, which is currently at 170 million SCM per day. The same government’s plan is to increase the share of natural gas in the energy basket from 6.2 percent to 15 percent. The share of eco-friendly fuels in the total fuel demand is only close to 2 percent,
