Fertilizer, city gas distribution sectors to benefit from low domestic gas price

The continuing low in domestic gas price will benefit profitability of end-user industries such as fertilizer and city gas distribution (CGD), India Ratings and Research has stated in a recent report.

However, this will impact the profitability of upstream natural gas producers, which will remain subdued due to lower realizations and higher production cost, the report added.

This comes against the backdrop of India keeping domestic natural gas price unchanged at $1.79 per metric million British thermal unit (mmBtu) for the first six months of the current financial year under the domestic gas price regime, which was introduced in 2014.