New Delhi, Oct 3 () The 12.5 per cent cut in domestic natural gas price is credit negative for India’s biggest producer ONGC as its earnings will fall by over Rs 1,400 crore, Moody’s Investors Service said on Thursday.
On September 30, the government announced a 12.5 per cent reduction in domestic natural gas price to USD 3.23 per million British thermal units (mmBtu) from USD 3.69 per mmBtu (on a gross calorific value basis).
This is the first reduction in gas price in India since April 2017.
“The price decrease is credit negative for Oil and Natural Gas Corporation Ltd (ONGC) because its revenue and earnings from the gas business will fall by around Rs 1,460 crore.
