The NDA Government Friday Sep 30,2016 slashed the price of domestically produced natural by 18 per cent in the wake of a slump in global prices.
The reduction in natural gas prices would mean lower raw material cost for compressed natural gas (CNG) and natural gas piped to households (PNG), translating into lower retail prices. Fertiliser and power companies will also benefit from lower gas price.
The price of natural gas based on gross calorific value has been revised lower to $2.5 per million British thermal unit (mmBtu), with effect from October 1, 2016 from the current level of $3.06.
This is the fourth reduction in nearly two years following the formula approved by the government in October 2014. The next revision is due on April 1.
As per the new pricing formula, gas prices are revised every six months based on rates in countries like the US, Canada and Russia.
Rates were last cut by 20 per cent to $3.06 from April 1, 2016. The price of gas between October 1, 2015 and March 31, 2016 was $3.81 per mmBtu and $4.66 in the previous six-month period.
The reduction in natural gas prices would mean lower raw material cost for compressed natural gas (CNG) and natural gas piped to households (PNG), translating into lower retail prices. Fertiliser and power companies will also benefit from lower gas price.
The price of natural gas based on gross calorific value has been revised lower to $2.5 per million British thermal unit (mmBtu), with effect from October 1, 2016 from the current level of $3.06.
This is the fourth reduction in nearly two years following the formula approved by the government in October 2014. The next revision is due on April 1.
As per the new pricing formula, gas prices are revised every six months based on rates in countries like the US, Canada and Russia.
Rates were last cut by 20 per cent to $3.06 from April 1, 2016. The price of gas between October 1, 2015 and March 31, 2016 was $3.81 per mmBtu and $4.66 in the previous six-month period.
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