Domestic gas price cut by 12.5 per cent to $3.23 a unit
The Ministry of Petroleum and Natural Gas has lowered the price of domestically produced natural gas to $ 3.23 per million British thermal unit (mBtu). This price will be applicable from October 1, 2019 to March 31, 2020. The new price is 12.5 per cent lower than the $ 3.69 mBtu natural gas price for the April 1, 2019 to September 30, 2019 period.
The ceiling price allowed for gas to be produced from difficult fields has also been lowered to $ 8.43 a mBtu from $ 9.32 a mBtu. Domestic natural gas price in the country is governed as per the New Domestic Gas policy, 2014.
Commenting on the impact of this cut, a CARE Ratings statement said, “As per our estimates, a 12.5 per cent fall in natural gas prices could potentially lead to a 6 per cent decrease in cost of production of urea,
