Government Raises Natural Gas Price For April-September By 10%: Report

Government has raised the price of its locally produced gas by about 10 per cent to $3.69 per million metric British thermal units (mmBtu) for the April-September period, compared with the previous six months, a source aware of the development said.

Government has also set the ceiling price for gas to be produced from difficult fields at $9.32 per mmBtu for April-September, up about 21.5 per cent from $7.67 per mmBtu in the previous six months, the source told Reuters on Friday.

The government will formally announce the revised prices later in the day, the source said.

The prices will be applicable on gross heat value basis. The increase in natural gas prices means higher prices for gas for fertilizers, automobiles and households.

Higher gas prices, however, will lead to higher earnings for state-owned Oil and Natural Gas Corp Ltd and Oil India Ltd.