India Poised To Raise Natural Gas Prices To Highest In Two Years


India Poised To Raise Natural Gas Prices To Highest In Two Years

India is set to lift its domestic natural gas price to the highest in at least two years, boosting earnings of producers like Oil and Natural Gas Corp., according to a survey of analysts and industry participants.

The federal government will increase the price to $3.2 per million British thermal units for April to September, almost 11% more than the current price of $2.89, according to an average of 10 estimates, compiled by Bloomberg. India sets the rate every six months and an announcement on the price is due next week.

Higher gas prices may encourage producers to boost investment and production, helping the country meet its goals of cutting energy imports and more than doubling the share of gas in the energy mix. The increase will boost the earnings of India’s largest gas producer Oil and Natural Gas Corp. and Oil India Ltd., according to Gagan Dixit, an analyst at Elara Securities India Pvt. Read More…

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