Domestic natural gas price up by over 60%: Impact and future outlook
The price of domestically produced natural gas was raised by over 60 per cent last week to 2.90 dollars per million British thermal units (mBtu). This resulted in a rise in the prices of compressed natural gas (CNG) and piped natural gas (PNG), both of which became two to three rupees per kilogram costlier across the country. These developments came on the back of global cues, as these are benchmarked to the price of natural gas in prominent gas markets, called hubs.
The main beneficiaries of this price hike are public-sector undertakings Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL), which account for a large part of the gas produced under the administered price mechanism (APM).
