The domestic natural gas prices in the country are set to fall around 4.5 per cent to $3.52 per million British thermal units from October following a drop in prices at the global gas hubs. The prices of domestic gas produced were raised by 10 per cent to $3.69 per mBtu from April 1.
According to the new pricing formula approved by the NDA government in October 2014, prices are to be revised every six months. The reduction in natural gas prices would mean lower raw material costs for compressed natural gas (CNG) and natural gas piped to households (PNG) and would translate into a reduction in retail prices.
It would also mean lower feedstock cost for power generation and the manufacturing of fertilisers. The gas prices are revised twice a year based on global hub formula. Read more