Natural gas prices in India likely to be cut by steep 25% from April

Natural gas prices in India are likely to be cut by a steep 25 per cent beginning April, in line with the slump in global rates, sources said.

The price of most of the natural gas produced by state-owned ONGC and Oil India Ltd, which account for the bulk of India’s existing gas output, is likely to be cut to around USD 2.5 per million British thermal unit for the six-month period beginning April 1, from $3.23 as of now.

This will be the second reduction in six months and will reduce rates to the lowest in two-and-half-years.

Sources said the price of gas produced from difficult fields too is likely to be cut to $5.50 from $8.43 per mmBtu now.