(FirstPost)
The government on Friday announced a 10 percent hike in price of domestic natural gas, a move that will translate into higher CNG price and increased cost of electricity and urea production. Price paid to most of the domestic producers of natural gas has been hiked to $3.36 per million British thermal unit (mmBtu) from 1 October, from the current $3.06, according to Oil Ministry’s Petroleum Planning and Analysis Cell.
Natural gas prices are set every six months based on average rates in gas-surplus nations like the US, Russia and Canada. India imports half of its gas which costs more than double the domestic rate. The $3.36 per mmBtu rate would be for six months beginning 1 October and will be the highest since October 2015 to March 2016 when $3.82 per mmBtu price was paid to domestic producers.
