Research Article

Increase in Equilibrium Price by Fast Oscillations

Table 1

CNG consumer price detailed break up w.e.f. October 22, 2012.

S number Components Region I Region II
Rs./Kg Rs.MMBtu % Rs./Kg Rs.MMBtu %

Average well head price/cost of gas paid to exploration companies 18.04 358.87 92% 16.48 358.87 92%
Operating cost of gas companies 1.14 22.69 6% 1.04 22.69 6%
Return on investment to gas companies Other incomes (net of prior year 18.04 358.87 92% 16.48 358.87 92%
adjustment, if any, etc.) −0.53 −10.63 −3% −0.49 −10.63 −3%

to Average prescribed price of natural gas 19.51 388.27 100% 17.83 388.26 100%

Sale price of natural gas for CNG stations as advised by Federal Government under Section 8(3) of OGRA, ordinance including GDS/cross-subsidization. 35.19 700.32 38% 32.14 700.02 38%

Operating cost of gas stations 20.80 113.80 22% 20.80 453.01 25%

Profit of CNG station owners. 11.19 222.60 12% 10.59 230.61 13%

GIDC 13.25 263.57 14% 9.18 200.00 11%

GST (25% of price ) 12.10 240.69 13% 10.33 225.00 12%

Differential margin for region II 1.50 32.67 2%

Total CNG consumer price ( ) 92.53 1,840.98 100% 84.54 1,841.31 100%