Business Standard: Gas Prices in India to Fall 16% Next Year

Natural gas prices in India are likely to decline 16% next year before recovering gradually, but may not regain the current year rate till at least 2020.

Price of natural gas, using the formula approved by the government in October last year, is projected to fall to $3.22 per million British thermal unit in the first half of 2016-17 from current $3.82 per mmBtu.

Rates, which are set using prevalent price in gas surplus nations like the US, Russia and Canada, are fixed for six months and accordingly are projected to rise to $3.32 in second half of 2016-17 fiscal.

These projections about the natural gas prices in India have been carried in the report of a US-based consultant DeGolyer and MacNaughton (D&M) on the dispute between ONGC and Reliance Industries over sharing of gas reservoir in the KG Basin. MORE