Natural gas prices hiked by 40%
The formula-driven domestically produced natural gas prices were hiked by a steep 40 per cent to record levels of $8.57 per million British thermal units for six months from October, as global prices firmed up due to the ongoing Russia-Ukraine conflict.
The spike in the prices of natural gas would add to the inflationary pressure in the economy as it is used to generate electricity, make fertiliser and is converted into CNG to run automobiles.
However, it would increase the profits of exploration firms such as ONGC and Reliance Industries. This could trigger the Modi government to consider including natural gas production within the ambit of the windfall tax.
