Government Raises Natural Gas Prices from Difficult Fields

The government has increased the price of natural gas from difficult areas, such as the deep sea KG-D6 block, to USD 10.16 per mmBtu. However, the price of gas used for CNG and household cooking remains unchanged due to a price cap set at 30% below market rates.

In a significant move, the government on Monday announced a slight increase in the price of natural gas extracted from challenging areas like the deep sea KG-D6 block, setting it at USD 10.16 per million British thermal units (mmBtu), aligning with global trends.

Nonetheless, the cost of natural gas utilized for CNG production and domestic cooking will stay the same, owing to a price cap that limits it to 30% less than market rates, such as those paid to Reliance Industries.

The new price, effective from October 1, 2023, reflects a minor rise from USD 9.87 per mmBtu in the previous six-month period, following consecutive bi-annual price cuts. The amendment aims to support the government's strategy to transition towards a gas-based economy by 2030.

(With inputs from agencies.)