Indian Domestic Gas Price to Drop 20% in October

Price of natural gas paid to producers in India is likely to drop by 20% in October, Press Trust of India has reported.

This would be fourth drop in gas price in last 18 months following the formula approved by the government in October 2014. Price of natural gas produced from existing fields of ONGC and RIL is likely to fall to $2.45 per million British thermal unit (mmBtu) with effect from October 1 as opposed to $3.06 currently, a senior official said.

This rate is on gross calorific value (GCV) basis.

As per the new gas pricing formula approved by the current NDA- government in October 2014, gas prices are to be revised every six months and the next change is due on October 1, Press Trust said. .

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.