Natural gas prices on Tuesday were cut by a steep 26% to its lowest rate since the pricing was made formula-driven in 2014, a move that is likely to translate into lower CNG and piped cooking gas prices but also make a huge dent in revenues of producers such as ONGC.
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 such as deepsea too has been cut to $5.61 from $8.43 per mmBtu now.
