Move to slash gas rates by 26%

Domestic natural gas prices were cut by a steep 26 per cent, the lowest since the formula-driven pricing was introduced in 2014. The cut will dent the revenues of producers such as ONGC and Oil India, but lower the prices of CNG and piped cooking gas.

The oil ministry’s Petroleum Planning and Analysis Cell (PPAC) said the bulk of India’s existing gas production will be priced at $2.39 per million British thermal unit for the six-month period beginning April 1, down from $3.23 as of now. This will be the second reduction in six months to the lowest since 2014.

The price of gas produced from difficult fields in the deep sea too has been cut to $5.61 from $8.43 per mmBtu now.