On the back of rising global crude oil and natural gas rates, analysts expect the price of domestic gas to increase to $3.15/million British thermal units (mBtu) for the October-March period.
In September 2020, the Centre had slashed domestic gas price to an all-time low rate of $1.79/ mBtu and had kept the rate unchanged for the April-October 2021 period. The price is much below the breakeven point of $3.2-3.5/mbtu for most domestic gas fields, and has impacted the realisations of domestic producers like the state-run Oil and Natural Gas Corporation (ONGC) and Oil India. Domestic gas price is linked to the weighted average price of four global benchmarks (US, UK, Canada and Russia).
