The rate for undeveloped discoveries in difficult areas has been cut to $5.56 from $5.6 per mmBtu currently, Press Trust of India reported.
As per the mechanism approved in October 2014, the price of domestically produced natural gas is to be revised every six months - April 1 and October 1 - using weighted average or rates prevalent in gas-surplus economies at the Henry Hub of the US, National Balancing Point of the UK, rates in Alberta (Canada) and Russia with a lag of one quarter.
Rates were last revised on October 1, 2016 when they were cut 18 per cent to $2.5 per mmBtu from $3.06. This was the fourth six-monthly reduction.
Prior to the October cut, rates were reduced 20 per cent to $3.06 from April 1, 2016. The price of gas between October 1, 2015 and March 31, 2016 was $3.81 per mmBtu and $4.66 in the prior six-month period.
(With inputs from PTI)