India Cuts Gas Price by 18%

India’s Ministry of Petroleum and Natural Gas on Wednesday announced 18 percent reduction in the domestic gas price.

According to a circular from the Petroleum Planning and Analysis Cell (PPAC), a part of Petroleum Ministry, the price of natural gas from domestic fields would drop to $4.24/mmBtu from October 1 on net calorific value (NCV) basis, from $5.18/mmBtu previously. The revised price on a gross calorific value (GCV) basis would be $3.82/mmBtu.

The new price would be valid for six months.

Indian government has in October approved a new gas price formula based on a formula linked to select global gas price indices.