Guwahati: The spike in natural gas prices has impacted the tea business hard, just as the season was ramping up.
According to the Golaghat-based North Eastern Tea Association, the unusual rise in natural gas prices has hurt the tea business.
The price increase coincides with a rise in global energy costs caused by the Russia-Ukraine war.
“At this moment, the sector is being hammered by a multifold increase in gas prices,” said Kamal Jalan, Chairman of the North Eastern Tea Association (NETA), in a statement.
It has urged the Union Government to include natural gas under the scope of GST in order to ensure the long-term viability of the tea sector.
The Petroleum Planning & Analysis Cell informed ONGC, OIL, and the Director-General of the Directorate General of Hydrocarbons that “the price of domestic natural gas for the period April 1, 2022, to September 30, 2022, is $6.10/MMBTU on a Gross Calorific Value (GCV) basis.”
According to the organization, the price of natural gas has climbed from Rs. 5,085.00 to Rs. 21,119.57 per 1000 scum in the last ten months, from July 2021 to April 2022.
“The price of natural gas per litre has increased four times in the previous 10 months,” he remarked.