ONGC sees ₹6,000 cr- ₹7,000 cr loss on natural gas business
New Delhi: India’s top oil and gas producer ONGC on Friday said it is losing ₹6,000-7,000 crore on natural gas business after the government-mandated rates for the fuel dropped to a decade low.
The government-mandated rates are way below the cost of production of USD 3.5-3.7 per million British thermal unit, Oil and Natural Gas Corp (ONGC) Director (Finance) Subhash Kumar said.
Every dollar reduction in gas price leads to a revenue loss of about ₹5,200 crore and a ₹3,500 crore on profit.
