Domestic natural gas prices likely to remain unchanged at $2 on April 1: ICICI Securities

Domestic natural gas will be priced at $2 per mmBtu, almost unaltered from the current price when the government revises rates on April 1, ICICI securities NSE -0.52 % said in a report.

The new expected price, based on net calorific value (NCV), is derived from international prices in the calendar year 2020. The current price, published by the government on a gross calorific value (GCV) basis, is $1.79 per mmBtu, a record low. On NCV basis, this amounts to $2.

Most of the country’s natural gas output is sold for a price obtained under a government-set formula introduced in 2014. Prices are revised every April and October and are valid for six months.