NEW DELHI: In a boost to firms like ONGC and Reliance Industries, the government is likely to raise the price of domestically produced natural gas by over 10 percent to over USD 3.72 per million British thermal unit with effect from April 1, sources in know of the development said.
The price of gas produced from difficult fields will rise to about USD 9 per million British thermal unit (mmBtu) from current USD 7.67, they said. This will be the fourth straight increase in gas prices.
Natural gas prices are set every six months – on April 1 and October 1 every year – based on average rates in gas-surplus nations like the US, Russia and Canada. The rate is calculated by taking a weighted average price at Henry Hub of the US, National Balancing Point of the UK, rates in Alberta (Canada) and Russia with a lag of one quarter. So for April 1 to September 30, period, the average rates prevailing during January 1, 2018, to December 1, 2018, would be taken.
