India Cuts Domestic Gas Price by 18%

India has cut domestic natural gas price by 18% for the period Oct 1, 2016 to March 31, 2017, said a notification issued by the oil ministry’s Petroleum Planning & Analysis Cell (PPAC) September 30.

“The price of domestic natural gas for the period October 1, 2016 to March 31, 2017 is $2.50/mn Btu on Gross Calorific Value (GCV) basis,” the notification stated. This is the fourth drop in gas price in last 18 months following the formula approved by the government in October 2014.

As per the new gas pricing formula approved by the current Indian 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.

Shardul Sharma