MUMBAI: Even as the increase in domestic gas prices is in line with the rise in global gas indices, the price notified at USD 3.69/mmbtu is expected to provide only a partial relief to the gas producers, the report said.
The domestic gas price is notified at USD 3.69/mmbtu (GCV basis) for H1 FY2020, an increase of 9.8 percent from the price of USD 3.36/mmbtu (GCV basis) applicable for H2 FY19, the rating agency Icra said in its report.
“The increase in domestic gas price is in line with the rise in global gas indices primarily Henry Hub over the reference period and takes the price to its highest level in two and a half years. However, with prices of gas at various international hubs falling again, the domestic gas price increase looks likely to be reversed in H2 FY20,” it said.
