Crude oil prices may have retreated from the highs seen during the peak of the Iran conflict, but consumers are not getting much relief at the pump.


Why US gas prices aren't coming down 

The Trump administration is facing mounting pressure at home as the economic fallout from the ongoing Iran war deepens.
With fuel prices climbing and inflation surging sharply, the White House is now scrambling to contain public anger ahead of the midterm elections.

White House Looking at Steps to Ease Gas Price

Gasoline prices in the United States have surged past $4 per gallon for the first time since 2022 as the ongoing US-Iran war disrupts global oil supplies and fuels market uncertainty. The spike follows tensions around the Strait of Hormuz, a vital route for nearly one-fifth of the world’s oil shipments. Analysts warn that continued instability in West Asia could push fuel costs even higher, adding pressure on households, transport sectors, and global inflation trends. 


US-Iran War: US Gas Prices Hit $4 Per Gallon Amid Crisis

The Indian government approved the recommendations of a gas panel report, on Thursday (April 6) which would fix the cost of natural gas by imposing a cap or ceiling price and help lower the cost of compressed natural gas (CNG) and piped cooking gas prices (PNG) by up to 10 per cent. The new price cap will come into effect from Saturday, in a bid to control inflation and a major relief to consumers across the country.&nbsp; 
&nbsp; 
Changes to the pricing mechanism

The announcement, on Thursday, was made by the country’s Information Minister Anurag Thakur after a meeting of the Cabinet Committee on Economic Affairs which was chaired by Prime Minister Narendra Modi. PNG will be cheaper by 10 per cent while CNG will cost at least six to nine per cent lesser, said Thakur while addressing a press conference and adding that the government will issue a notification in this regard on Friday (April 6) which will come into effect on Saturday (April 8).&nbsp;

This comes as the natural gas produced from legacy or old fields will now be indexed to the crude oil price as opposed to pricing it based on gas prices in surplus nations such as the United States, Canada and Russia, said the information minister.&nbsp;

The price will also apply to industrial buyers and companies in the fertiliser and city gas distribution sectors which will be fixed on a monthly basis, reported Reuters. Notably, old fields mostly operated by Oil and Natural Gas Corp (ONGC) and Oil India Ltd (OIL) account for around 80 per cent of India’s annual gas output of about 91 billion cubic metres. The lower prices are set to hit the earnings of these companies.&nbsp;

The approved revised domestic natural gas pricing guidelines will be imposed for&nbsp;gas produced from nomination fields of ONGC/OIL, New Exploration Licensing Policy (NELP) blocks and pre-NELP blocks where&nbsp;the Production Sharing Contract (PSC) provides for the government’s approval of prices.&nbsp;

“The price of such natural gas shall be 10 per cent of the monthly average of Indian Crude Basket and shall be notified on a monthly basis,” said the government, in a statement.&nbsp;

The gas produced by ONGC and OIL from their nomination blocks and&nbsp;the administered price mechanism (APM) shall be subject to a floor and a ceiling. However, the gas produced from new wells or well interventions in the nomination fields of ONGC and OIL would be allowed a premium of 20 per cent over the APM price, the statement added.&nbsp;

Previous pricing guidelines

Currently, the domestic gas prices are determined as per the new Domestic Gas Pricing Guidelines, 2014, approved by the government in the same year and provide for the declaration of domestic gas prices for a six-month period based on the volume-weighted prices prevailing at four gas trading hubs.&nbsp;

The trading hubs in question are Henry Hub, Albena, National Balancing Point (United Kingdom), and Russia for a period of 12 months and a time lag of a quarter. However, the previous guidelines based on the four gas hubs had a “significant time lag and very high volatility,” said the government. Therefore, the revised guidelines will make prices linked to crude oil, a practice now followed in most industry contracts.&nbsp;

Why now?

Last year, the Indian government set up a committee led by energy expert Kirit Parikh to review gas prices and determine a pricing formula that takes into account the interests of both local consumers and producers. The panel was also asked to ensure after state-set prices of gas from old fields and a ceiling price for output from hard-to-access blocks rose to record highs.&nbsp;

“The new guidelines are intended to ensure stable pricing regime for domestic gas consumers while at the same time providing adequate protection to producers from adverse market fluctuation with incentives for enhancing production,” said the government in a statement. Furthermore, the reduced prices shall also lower the fertiliser subsidy burden and help the domestic power sector.&nbsp;

This also comes as the government aims to transition to a gas-based economy and PM Modi’s aim to raise the share of gas in India’s energy mix to 15 per cent by 2030 from 6.2 per cent. Furthermore, it will also contribute to India’s ‘net zero’ carbon-emission goal.&nbsp;

The panel has since recommended a price range for current production from legacy or old fields. After the announcement, the Indian PM took to Twitter and wrote, “The Cabinet decision relating to revised domestic gas pricing has many benefits for the consumers. It is a positive development for the sector.”

Expected price changes in CNG and PNG

In the national capital, Delhi the current price of CNG is expected to reduce from Rs. 79.56 per kg ($0.97) to 73.59 ($0.90), whereas the price of PNG is expected to drop from Rs. 53.59 ($0.66) per thousand cubic metres to Rs. 47.59 ($0.58). Meanwhile, in Mumbai, CNG is expected to cost Rs. 79 ($0.97) per kg instead of Rs. 87 ($1.06) while PNG may drop to cost Rs. 49 ($0.60) per Standard Cubic Meter (SCM) from the current Rs. 54 ($0.66).&nbsp;

(With inputs from agencies)&nbsp; 
 
&nbsp;

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The Indian government approved the recommendations of a gas panel report, on Thursday (April 6) which would fix the cost of natural gas by imposing a cap or ceiling price and help lower the cost of compressed natural gas (CNG) and piped cooking gas prices (PNG) by up to 10 per cent.

The Indian government approved the recommendations of a gas panel report, on Thursday (April 6) which would fix the cost of natural gas by imposing a cap or ceiling price and help lower the cost of compressed natural gas (CNG) and piped cooking gas prices (PNG) by up to 10 per cent. The new price cap will come into effect from Saturday, in a bid to control inflation and a major relief to consumers across the country. Changes to the pricing mechanism The announcement, on Thursday, was made by the country’s Information Minister Anurag Thakur after a meeting of the Cabinet Committee on Economic Affairs which was chaired by Prime Minister Narendra Modi. PNG will be cheaper by 10 per cent while CNG will cost at least six to nine per cent lesser, said Thakur while addressing a press conference and adding that the government will issue a notification in this regard on Friday (April 6) which will come into effect on Saturday (April 8). This comes as the natural gas produced from legacy or old fields will now be indexed to the crude oil price as opposed to pricing it based on gas prices in surplus nations such as the United States, Canada and Russia, said the information minister. The price will also apply to industrial buyers and companies in the fertiliser and city gas distribution sectors which will be fixed on a monthly basis, reported Reuters. Notably, old fields mostly operated by Oil and Natural Gas Corp (ONGC) and Oil India Ltd (OIL) account for around 80 per cent of India’s annual gas output of about 91 billion cubic metres. The lower prices are set to hit the earnings of these companies. The approved revised domestic natural gas pricing guidelines will be imposed for gas produced from nomination fields of ONGC/OIL, New Exploration Licensing Policy (NELP) blocks and pre-NELP blocks where the Production Sharing Contract (PSC) provides for the government’s approval of prices. “The price of such natural gas shall be 10 per cent of the monthly average of Indian Crude Basket and shall be notified on a monthly basis,” said the government, in a statement. The gas produced by ONGC and OIL from their nomination blocks and the administered price mechanism (APM) shall be subject to a floor and a ceiling. However, the gas produced from new wells or well interventions in the nomination fields of ONGC and OIL would be allowed a premium of 20 per cent over the APM price, the statement added. Previous pricing guidelines Currently, the domestic gas prices are determined as per the new Domestic Gas Pricing Guidelines, 2014, approved by the government in the same year and provide for the declaration of domestic gas prices for a six-month period based on the volume-weighted prices prevailing at four gas trading hubs. The trading hubs in question are Henry Hub, Albena, National Balancing Point (United Kingdom), and Russia for a period of 12 months and a time lag of a quarter. However, the previous guidelines based on the four gas hubs had a “significant time lag and very high volatility,” said the government. Therefore, the revised guidelines will make prices linked to crude oil, a practice now followed in most industry contracts. Why now? Last year, the Indian government set up a committee led by energy expert Kirit Parikh to review gas prices and determine a pricing formula that takes into account the interests of both local consumers and producers. The panel was also asked to ensure after state-set prices of gas from old fields and a ceiling price for output from hard-to-access blocks rose to record highs. “The new guidelines are intended to ensure stable pricing regime for domestic gas consumers while at the same time providing adequate protection to producers from adverse market fluctuation with incentives for enhancing production,” said the government in a statement. Furthermore, the reduced prices shall also lower the fertiliser subsidy burden and help the domestic power sector. This also comes as the government aims to transition to a gas-based economy and PM Modi’s aim to raise the share of gas in India’s energy mix to 15 per cent by 2030 from 6.2 per cent. Furthermore, it will also contribute to India’s ‘net zero’ carbon-emission goal. The panel has since recommended a price range for current production from legacy or old fields. After the announcement, the Indian PM took to Twitter and wrote, “The Cabinet decision relating to revised domestic gas pricing has many benefits for the consumers. It is a positive development for the sector.” Expected price changes in CNG and PNG In the national capital, Delhi the current price of CNG is expected to reduce from Rs. 79.56 per kg ($0.97) to 73.59 ($0.90), whereas the price of PNG is expected to drop from Rs. 53.59 ($0.66) per thousand cubic metres to Rs. 47.59 ($0.58). Meanwhile, in Mumbai, CNG is expected to cost Rs. 79 ($0.97) per kg instead of Rs. 87 ($1.06) while PNG may drop to cost Rs. 49 ($0.60) per Standard Cubic Meter (SCM) from the current Rs. 54 ($0.66). (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Explained | India: CNG, PNG to cost less after revision in domestic gas pricing. Here’s how

EU energy ministers have agreed a plan to cap the price of gas, ending months of argument over how to handle the cost of soaring energy prices after Russia cut gas supplies to Europe.

EU energy ministers agree on a gas price cap to contain crisis

The European Union members have finally agreed on a gas price cap, a spokesperson for the Czech Republic posted on Twitter on Monday. The Czech Republic currently holds the presidency for the bloc and after a meeting between the energy ministers of all the major members, it was decided that the cap on gas prices will be active once the benchmark gas prices cross 180 euros ($190) per megawatt hour.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/world/putin-urges-unity-with-russia-difficult-times-during-rare-visit-to-belarus-544596">Putin urges unity with Russia 'difficult times' during rare visit to Belarus</a>

The members have been trying to agree on a gas price gap in order to stop the market reliance on Russian exports. With the EU imposing massive sanctions on Russia, the Kremlin decided to cut off gas supplies to Europe and in the face of an energy crisis, it became&nbsp;important to put a cap on the prices. &nbsp;

Reuters reported that the gas price cap will depend directly on the front-month&nbsp;Dutch Title&nbsp;Transfer Facility gas hub contract – the central price of gas for the European Union countries. It will become official from February 15 in 2023 but will not be applicable to “over-the-counter trades”. &nbsp;

WATCH |&nbsp;WION Climate Tracker: EU strikes deal to boost Carbon Market

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While the members did eventually reach a unanimous decision, three EU officials said that Germany was skeptical of the decision and had previously raised questions about the bloc’s ability to find a proper alternative to take care of the gas demands. While the EU is considering various options in the aftermath of Russia’s withdrawal, no concrete decision has been taken about solving the issue.&nbsp;

“Nobody in Germany is against low gas prices, but we know we have to be very careful not to wish for the good but to do bad,” German economy minister Robert Habeck said according to Reuters.&nbsp;

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The European Union members have finally agreed on a gas price cap, a spokesperson for the Czech Republic posted on Twitter on Monday. The Czech Republic currently holds the presidency for the bloc and after a meeting between the energy ministers of all the major members, it was decided that the cap on gas prices will be active once the benchmark gas prices cross 180 euros ($190) per megawatt hour.

The European Union members have finally agreed on a gas price cap, a spokesperson for the Czech Republic posted on Twitter on Monday. The Czech Republic currently holds the presidency for the bloc and after a meeting between the energy ministers of all the major members, it was decided that the cap on gas prices will be active once the benchmark gas prices cross 180 euros ($190) per megawatt hour. Also read | Putin urges unity with Russia 'difficult times' during rare visit to Belarus The members have been trying to agree on a gas price gap in order to stop the market reliance on Russian exports. With the EU imposing massive sanctions on Russia, the Kremlin decided to cut off gas supplies to Europe and in the face of an energy crisis, it became important to put a cap on the prices. Reuters reported that the gas price cap will depend directly on the front-month Dutch Title Transfer Facility gas hub contract – the central price of gas for the European Union countries. It will become official from February 15 in 2023 but will not be applicable to “over-the-counter trades”. WATCH | WION Climate Tracker: EU strikes deal to boost Carbon Market While the members did eventually reach a unanimous decision, three EU officials said that Germany was skeptical of the decision and had previously raised questions about the bloc’s ability to find a proper alternative to take care of the gas demands. While the EU is considering various options in the aftermath of Russia’s withdrawal, no concrete decision has been taken about solving the issue. “Nobody in Germany is against low gas prices, but we know we have to be very careful not to wish for the good but to do bad,” German economy minister Robert Habeck said according to Reuters.

European Union energy ministers finally reach gas price cap agreement

The European Union energy ministers were unable to agree on a cap on gas prices amid the ongoing energy crisis in Europe. Czech industry minister Jozef Sikela, whose country holds the current presidency of the EU, said on Thursday that the members will meet in December once again in an attempt to come up with a common price cap. However, AFP reported that a couple of measures were agreed upon during the meeting including joint gas purchases and a gradual shift to renewable energy sources.&nbsp;

Ahead of the meeting, the European Commission came up with a plan to introduce a price cap on natural gas across Europe but it was not received well by most member states. According to the plan, the maximum cap will be 275 euros per megawatt hour but it came with some conditions.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/world/russia-blames-foreign-and-ukrainian-air-defence-systems-for-damages-in-kyiv-537151">Russia blames 'foreign and Ukrainian air defence' systems for damages in Kyiv</a>

The proposed cap will only be viable if the limit is breached for two weeks continuously and during the same period of time, the price for liquified natural gas (LNG) also goes up over 58 euros.&nbsp;

As a result, most members expressed their doubt over the complications that can arise from the proposed cap and the Polish and Spanish energy ministers even called it a ‘joke’, according to AFP.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/who-is-lt-gen-asim-munir-and-why-his-appointment-as-next-pak-army-chief-has-rattled-imran-khan-537111">Who is Lt Gen Asim Munir and why his appointment as next Pak army chief has rattled Imran Khan?</a>

The sanctions imposed on Russia in the wake of the invasion of Ukraine have made life difficult for Europe. Russia used to account for over 40 per cent of the gas supply in the continent and although there is no complete ban, the Kremlin has stopped its exports in what Europe is calling a tactical move.&nbsp;

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The European Union energy ministers were unable to agree on a cap on gas prices amid the ongoing energy crisis in Europe. Czech industry minister Jozef Sikela, whose country holds the current presidency of the EU, said on Thursday that the members will meet in December once again in an attempt to come up with a common price cap.

The European Union energy ministers were unable to agree on a cap on gas prices amid the ongoing energy crisis in Europe. Czech industry minister Jozef Sikela, whose country holds the current presidency of the EU, said on Thursday that the members will meet in December once again in an attempt to come up with a common price cap. However, AFP reported that a couple of measures were agreed upon during the meeting including joint gas purchases and a gradual shift to renewable energy sources. Ahead of the meeting, the European Commission came up with a plan to introduce a price cap on natural gas across Europe but it was not received well by most member states. According to the plan, the maximum cap will be 275 euros per megawatt hour but it came with some conditions. Also read | Russia blames 'foreign and Ukrainian air defence' systems for damages in Kyiv The proposed cap will only be viable if the limit is breached for two weeks continuously and during the same period of time, the price for liquified natural gas (LNG) also goes up over 58 euros. As a result, most members expressed their doubt over the complications that can arise from the proposed cap and the Polish and Spanish energy ministers even called it a ‘joke’, according to AFP. Also read | Who is Lt Gen Asim Munir and why his appointment as next Pak army chief has rattled Imran Khan? The sanctions imposed on Russia in the wake of the invasion of Ukraine have made life difficult for Europe. Russia used to account for over 40 per cent of the gas supply in the continent and although there is no complete ban, the Kremlin has stopped its exports in what Europe is calling a tactical move.

European Union fails to agree on gas price cap, members to deliberate again next month

US President Joe Biden hit out at oil firms for posting bumper profits this year amid the Ukraine war, calling on them to increase production to help bring down gas prices at the pump or pay a windfall tax.

US President Joe Biden compares oil firms to war profiteers, threatens windfall tax

High inflation is taking a toll on Europe. To reduce the pressure, some EU members want to impose a cap on the price of imported gas. But the latest summit in Brussels could not break the stalemate.

WION Fineprint:  EU can't agree on a gas price cap

The US Federal Reserve is expected to raise the interest rates significantly for the third consecutive time as it finds it difficult to tame inflation.&nbsp;

Experts believe that the central bank will raise its benchmark interest rate by 0.75 basis points in the range of 3 to 3.25 per cent, following&nbsp;similarly large&nbsp;rate hikes in June and July.&nbsp;

The policy decision, which will be announced at 2 p.m. EDT (1800 GMT), falls in line with the policy shift of the global central banks who are testing the resilience of the world's economy and the ability of countries to manage exchange rate shocks as the value of the dollar soars, reports Reuters.&nbsp;

Speaking at an economic conference in Wyoming last month, Federal Reserve Chair Jerome Powell issued a warning, saying that the central bank’s aim to curb inflation by aggressively raising interest rates would "bring some pain” for Americans.&nbsp;

"If we don't get inflation down, we're in trouble. So that's the number one job," he said.&nbsp;

It comes at a time when the US is struggling to control its inflation, which hovered around 8.3 per cent in August— down only slightly from the month before. &nbsp;

Though the gas price has dropped sharply&nbsp;from its record high in June, and airline tickets have gotten a bit cheaper, other costs continue to soar, including essentials such as rent, groceries and electricity.&nbsp;

The Fed has already increased its benchmark rate four times this year — from near zero to about 2.375 per cent, making it expensive to buy a car, use a credit card or get a mortgage. &nbsp;

(With inputs from agencies)&nbsp;

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The US Federal Reserve is expected to raise the interest rates significantly for the third consecutive time as it finds it difficult to tame inflation. Experts believe that the central bank will raise its benchmark interest rate by 0.

The US Federal Reserve is expected to raise the interest rates significantly for the third consecutive time as it finds it difficult to tame inflation. Experts believe that the central bank will raise its benchmark interest rate by 0.75 basis points in the range of 3 to 3.25 per cent, following similarly large rate hikes in June and July. The policy decision, which will be announced at 2 p.m. EDT (1800 GMT), falls in line with the policy shift of the global central banks who are testing the resilience of the world's economy and the ability of countries to manage exchange rate shocks as the value of the dollar soars, reports Reuters. Speaking at an economic conference in Wyoming last month, Federal Reserve Chair Jerome Powell issued a warning, saying that the central bank’s aim to curb inflation by aggressively raising interest rates would "bring some pain” for Americans. "If we don't get inflation down, we're in trouble. So that's the number one job," he said. It comes at a time when the US is struggling to control its inflation, which hovered around 8.3 per cent in August— down only slightly from the month before. Though the gas price has dropped sharply from its record high in June, and airline tickets have gotten a bit cheaper, other costs continue to soar, including essentials such as rent, groceries and electricity. The Fed has already increased its benchmark rate four times this year — from near zero to about 2.375 per cent, making it expensive to buy a car, use a credit card or get a mortgage. (With inputs from agencies) WATCH WION LIVE HERE:

US Fed set to raise interest rate ‘significantly’ as inflation continues to soar  

As global economies show worrying signs of rising food prices, soaring gas prices and high inflation rates, oil super majors witness record-breaking profits. How? Well, the Russian invasion of Ukraine is driving these stunning profits for the oil giants.

WION Fineprint: Oil & gas price surge amid Ukraine war

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