The government, at end September, cut natural gas prices by 16 per cent to $4.24 per unit for the six month period, beginning October 1. The price cut is the second reduction in rates ever, the first being on April 1.
While the cut will impact the revenue of producers like Oil and Natural Gas Corp (ONGC) and Reliance Industries, it will bring gains for users in the power and fertiliser sector in the form of lower feedstock cost.
Natural gas prices, according to a formula approved by the government in October last year, will fall to $4.24 per million British thermal unit on net calorific value (NCV) basis from the current $5.50 per mmBtu.
Govt slashes natural gas price by 16%
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