New Delhi : Natural gas price was on Friday cut marginally to $2.48 per million British thermal unit, the fifth reduction in two years.
Rate of natural gas produced from existing fields of state-owned Oil and Natural Gas Corp (ONGC) and Reliance Industries has been cut to $ 2.48 per mmBtu for a 6-month period from April 1, from $ 2.5 per mmBtu currently. As per the new gas pricing formula approved by the NDA- government in October 2014, gas prices are to be revised every six months. The reduction in natural gas prices would mean lower raw material cost for compressed natural gas (CNG) and natural gas piped to households (PNG) and would translate into reduction in retail prices. It would also mean lower feedstock cost for power generation and manufacturing of fertilisers. Rates were last cut by 18 per cent with effect from October 1, 2016. That had followed a 20 per cent reduction to $ 3.06 last April. The price of gas between October 1, 2015 and March 31, 2016 was $ 3.81 per mmBtu and $ 4.66 in prior six month period, reports PTI.
“The price of domestic natural gas for the period April 1, 2017 to October 31, 2017 is $ 2.48 per mmBtu on Gross Calorific Value (GCV) basis,” said a notification issued by the Oil Ministry.
