Gas price may fall below $2

Prices of natural gas in India are likely to be cut to $1.9-1.94 — the lowest in more than a decade — from October, denting the revenues of producers such as ONGC who are already incurring huge losses on production.

A price revision is due from October 1 and going by the changes in the benchmark rate in gas exporting nations, the price is likely to be anywhere between $1.90 and $1.94 per million British thermal unit (mBtu), sources privy to the development said.

This will be the third straight reduction in rates in one year. Prices were cut by a steep 26 per cent to $2.39 per mBtu in April.