Government revises price of domestic natural gas to $9.87 per MMBTU from Apr 1

The Ministry of Petroleum and Natural Gas on Sunday lowered the prices of natural gas extracted from various fields. Gas from deepwater, ultra-deepwater, and high-pressure fields now costs $9.87 per MMBTU, down from $9.96 per MMBTU. These revised rates will be effective from April 1 to September 30, 2024.

The government's domestic gas price applies to natural gas produced from the legacy and oil fields of Oil and Natural Gas Corporation Ltd (ONGC) and Oil India Limited (OIL).

Under the new pricing system, domestic gas prices are tied to the price of imported crude oil, set at 10 percent of the Indian crude basket. These prices are updated monthly.

The new pricing formula was implemented following recommendations from a government-appointed panel led by energy expert and former Planning Commission member Kirit Parikh. The changes were aimed at protecting domestic players and consumers from fluctuations in global markets.

Story to be updated soon.