Natural gas price in India touched the lowest rate on record after the government on Wednesday slashed the price by 25 per cent to USD 1.79, denting revenues of producers like ONGC.
The price of gas, which is used to generate electricity, make fertiliser and CNG for automobiles, has been cut to USD 1.79 per million British thermal unit for six months beginning October 1 from the current USD 2.39, an order of the Oil Ministry’s Petroleum Planning and Analysis Cell (PPAC) said.
This is the third straight reduction in rate in one year. The price was cut by a steep 26 per cent to USD 2.39 in April.
The rate paid to producers of new gas from difficult fields such as deepsea has also been cut to USD 4.06 per mmBtu from USD 5.61.
