8% lower natural gas price of $4.66 per unit from today
1 April 2015 1:34 AM GMT
Natural gas prices will be cut by about 8 per cent to $4.66 a unit from Wednesday to reflect the softening in international prices, a move that will lower electricity and fertiliser costs.
Oil Ministry's pricing cell, PPAC said domestically produced natural gas will cost $4.66 per million Btu from April 1 to September 30 on gross clarofic value basis (GCV) as opposed to $5.05 per mmBtu currently. On net clarofic value (NCV) basis, the rate would be $5.1726 or $5.18 as compared to $5.61 currently. The new rates are as per the formula approved by the government in October last year. This is the first reduction in price of natural gas in India. Domestic gas price was raised from $4.2 per mmBtu to $5.61 per mmBtu effective November 1.
While the cut will impact the revenue producers like Oil and Natural Gas Corp and Reliance Industries, it will bring gains for users in the power and fertiliser sector in form of lower feedstock cost. As per mechanism approved in October 2014, price of domestically produced natural gas are to be revised every six month using weighted average or rates prevalent in gas-surplus economies of US/Mexico, Canada and Russia.
Oil Ministry's pricing cell, PPAC said domestically produced natural gas will cost $4.66 per million Btu from April 1 to September 30 on gross clarofic value basis (GCV) as opposed to $5.05 per mmBtu currently. On net clarofic value (NCV) basis, the rate would be $5.1726 or $5.18 as compared to $5.61 currently. The new rates are as per the formula approved by the government in October last year. This is the first reduction in price of natural gas in India. Domestic gas price was raised from $4.2 per mmBtu to $5.61 per mmBtu effective November 1.
While the cut will impact the revenue producers like Oil and Natural Gas Corp and Reliance Industries, it will bring gains for users in the power and fertiliser sector in form of lower feedstock cost. As per mechanism approved in October 2014, price of domestically produced natural gas are to be revised every six month using weighted average or rates prevalent in gas-surplus economies of US/Mexico, Canada and Russia.
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