Govt lowers natural gas prices for April-September by 8 per cent

Locally produced natural gas will cost 8 per cent less during April-September, the government said in a statement on Tuesday, due to a decline in global prices .

The government in November introduced a new gas-pricing formula and raised the local prices by a third. The formula links the prices of locally produced natural gas with those in the United States, Canada, UK and Russia.

Prices will be cut to US $4.66 per million British thermal units (mmBtu) in the first half of next financial year starting April 1, 2015, on gross heat value basis.

The fuel will cost about US $5.18/mmbtu on a net heat value basis compared with US $5.61/mBtu now.

(Reuters)