Govt cuts natural gas prices by 16% to $4.24 per unit

Govt cuts natural gas prices by 16% to $4.24 per unit

The October 1, 2015 to March 31, 2016 rate will be based on average of prices during July 1, 2014 to June 30, 2015.

The government on Wednesday cut natural gas prices by 16 per cent to USD 4.24 per unit for the six month period, beginning October 1. Natural gas prices, according to a formula approved by the government in October last year, will fall to USD 4.24 per million British thermal unit on net calorific value (NCV) basis from the current USD 5.50 per mmBtu. On gross calorific value (GCV) basis, the new gas price for October 1 to March 31 would be USD 3.82 per mmBtu as compared to USD 4.66 currently, officials said. Using prevailing price in gas surplus nations like the US, Russia and Canada, the government had in October last year announced a new pricing formula that led to rates rising by about 33 per cent to USD 5.61 per mmBtu for a period up to March 31, 2015 from the long-standing price of USD 4.2.

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