India Hikes Price of Locally Produced Gas

India has increased the regulated wholesale price of locally produced natural gas by around 10% with effect from October 1, Indian oil ministry's Petroleum Planning and Analysis Cell (PPAC) said September 28.

The price paid to most domestic natural gas producers has therefore increased to $3.36/mn Btu from $3.06/mn Btu, according to PPAC. The current price structure will remain until March 31, 2019. The prices of locally-produced gas are set every six months. The prices will be applicable on the basis of gross calorific value.

India’s domestic gas production has been stagnant in the recent years and low prices have played a big role in that. To meet the demand shortfall, the south Asian nation imports LNG from producers such as Qatar, Russia, Australia and the US. India’s import dependency has consistently remained around 50%.