Domestically producued Natural Gas Price Slashed by 16% to $4.24/unit

 

The government on Wednesday Sep 30,2015 announced a price reduction of almost 16 % on net. 

From October 1,2015 domestically produced natural gas price will be at $4.24 a unit on net value for the next six months. 

This is slightly lower than what it was during the government controlled (administered price mechanism) regime at $4.66 a unit. 

There was speculation if the government would reduce the price for domestically produced gas in sync with the global trend as the worst hit will be its own exploration major — ONGC. 

A government notification said the revised price will be $3.82 per million British thermal unit (mBtu) on a gross calorific value basis (or $4.24 a unit on net) for October to March 2016 (value of the gas is measured based on its heat).

 This is the third revision since the gas price was deregulated in November 2014