Mumbai: The government has reset the price of domestic natural gas to a historic low of $.179 per mmBtu (million British thermal unit) from October 1 to March 31 under its pricing policy. While gas exploration companies will see their revenues fall under in the second half of this fiscal because of this, industries that use natural gas as an input, primarily fertilizer and power, stand to benefit.
The gas price for locally produced fields stood at $ 2.39/mmBtu in the first half of the fiscal; the new price brings it down by 25.1%. Meanwhile, the ceiling price for gas to be produced from difficult fields has also fallen to $4.06/mmBtu from $5.61/mmBtu, resulting in a 27.6% decrease.
Prices of domestic natural gas have fallen third time in a row now and prices which will be prevalent H2-FY21 onwards will be the lowest gas price ever recorded under the New Domestic gas policy.
