Natural gas price cut slightly to $2.48 per mmBtu

Natural gas price was on Friday cut marginally to $2.48 per million British thermal unit, the fifth reduction in two years. Rate of natural gas produced from the existing fields of state-owned Oil and Natural Gas Corp (ONGC) and Reliance Industries has been cut to $2.48 per mmBtu for a 6-month period from April 1, from $2.5 per mmBtu currently.

As per the new gas-pricing formula approved by the NDA government in October 2014, gas prices are to be revised every six months. The reduction in prices would mean lower raw material cost for CNG and natural gas piped to households (PNG) and would translate into reduction in retail prices.