New Delhi : The government may raise domestic natural gas price next week to its highest level in two years, a move that will translate into higher CNG price and increase cost of electricity and urea production.
Price paid to most of natural gas produced from domestic fields is likely to be hiked to $3.06 per million British thermal unit from April 1 from $2.89, sources privy to the development said.
Natural gas prices are set every six months based on average rates in gas-surplus nations like the US, Russia and Canada. India imports half of its gas which costs more than double the domestic rate. The $3.06 per mmBtu rate would be for six months beginning April 1 and will be the highest since April-September 2016 when a similar price was paid to domestic producers.
