New Delhi: Prices of natural gas, which is used to generate electricity, make fertiliser and is converted into CNG to run automobiles, were hiked by a steep 40% to record levels, in step with global firming up of energy rates.

The CNG-run automobile owners may feel the pinch as the price of natural gas has been hiked by a steep 40% to record levels on Friday. The rate paid for gas produced from old fields was hiked to USD 8.57 per million British thermal units from the current USD 6.1, according to an order from the oil ministry's Petroleum Planning and Analysis Cell (PPAC).

This will be the third increase in rates since April 2019 and this hike is seen as in step with global firming up of energy rates. The steep increase in prices is likely to reflect in higher rates for CNG and piped natural gas (PNG), which has in the last one year risen by over 70%.

The natural gas is used to generate electricity, make fertiliser and is converted into CNG and it also makes up for about two-thirds of all gas produced in the country.

Simultaneously, the price of gas from difficult and newer fields like the ones in Reliance Industries Ltd and its partner British Petroleum PLC operated deepsea D6 block in KG basin, was hiked to USD 12.6 per mmBtu from USD 9.92, the order said.

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