The government on Tuesday cut the domestic natural gas price for the April-September period to $2.39 per million British thermal unit (mBtu), the lowest in six years since the Narendra Modi government introduced the new pricing formula in November 2014.
The rate for gas produced from difficult fields will be $5.61 mBtu on gross calorific value basis. This ceiling price will be applicable for deepwater, ultra-deepwater, and high pressure-high temperature areas, including the under-development fields of Reliance Industries in KG-D6 block in Eastern Offshore.
On the other hand, the price of the majority of natural gas produced in the country, including by companies like Oil and Natural Gas Corporation and Oil India, will be up 26 per cent to $2.39 a unit for the six months, up from $3.23 a unit for the October 2019 to March 2020 period, according to a notification by the Petroleum Planning and Analysis Cell (PPAC).
