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 April 1, Indian oil ministry's Petroleum Planning and Analysis Cell (PPAC) said late-March.

The price paid to most domestic natural gas producers has therefore increased to $3.69/mn Btu from $3.36/mn Btu, according to PPAC. The current price structure will remain until September 30, 2019. The price of locally-produced gas is set every six months and 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%.