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India more than doubles price of locally produced gas
The Central Government on Thursday more than doubled the price of domestically produced natural gas for the six months beginning tomorrow (1 April), reflecting a surge in global prices
The Petroleum Planning and Analysis Cell of the federal oil ministry announced the new prices today. This will raise the prices of gas sold to households, the power sector, industries and fertiliser firms, adding to overall inflation.
As per a notification issued by the oil ministry’s PPAC, the price of gas from regulated fields of state-owned Oil and Natural Gas Corp Ltd and Oil India Ltd will rise to a record $6.10 per million British thermal unit from the current $2.90.
The rate paid for difficult fields like deepwater will rise to $9.92 for April-September from $6.13 per mmBtu, the notification stated. India links prices of locally produced gas from old fields to a formula tied to global benchmarks, including Henry Hub, Alberta gas, NBP and Russian gas.
High natural gas prices will boost earnings of producer ONGC, Oil India Ltd and Reliance Industries. India’s annual retail inflation exceeded 6% for the second consecutive month in February.
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