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The prices of domestic natural gas has been reduced to USD 8.44 per million metric British thermal units (mmBtu) for June 2024 from USD 8.90 in the previous month, the oil ministry said in a notification.
The domestic natural gas price, however, will continue to remain at USD 6.5 for the month, as per the formula used for the calculation of prices. According to the new gas pricing mechanism, domestic gas prices are now subject to a floor and ceiling of USD 4 per mmBtu and USD 6.5 per mmBtu, respectively. The domestic gas prices are notified by the government and apply to the natural gas produced from the legacy and oil fields of Oil and Natural Gas Corporation Ltd (ONGC) and Oil India Limited (OIL) Under the new pricing regime, domestic gas prices are linked with prices of imported crude and would be at 10 per cent of the Indian crude basket. The domestic natural gas prices are revised every month. The new pricing formula was kicked off after a government-appointed panel led by former NITI Aayog member and energy expert Kirit Parikh recommended several changes in gas pricing to insulate domestic players and consumers from the volatility in global markets. (ANI)
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