MUMBAI: The latest revision in domestic gas prices to $1.79 per million metric British thermal unit (mmBtu), for April-September, is the lowest and is unfavourable for domestic producers even as it will benefit consumers, rating agency Icra said in a note.
The ceiling on price for gas produced from deep water, ultra deepwater, high-pressure and high temperature fields has also been lowered to $3.62 per mmBtu for the period, down 10.8% sequentially.
“Going forward, the supply glut is expected to keep prices of domestic gas low in the near-to-medium term leading to poor returns even as domestic gas producers such as ONGC and RIL-BP ramp up gas production significantly,” said Sabyasachi Majumdar, senior vice-president & group head, Corporate Sector Ratings, Icra.
