Domestic gas price rises over two-fold

The government on Thursday hiked the price of the majority of domestically produced natural gas by about 110 per cent on the back of rising international gas prices.

The price of natural gas produced from fields awarded to state-owned ONGC and Oil India regulated under the Administered Price Mechanism (APM) was hiked to $6.1 per million British thermal unit (mmBtu) for the April-September period, up from $2.9 per mmBTu currently, according to the Petroleum Planning and Analysis Cell (PPAC).

The hike, which will come into effect on Friday, will likely lead to a rise in prices of CNG and piped natural gas.

The price of domestically produced natural gas is revised in line with the average prices in four key global markets — US Henry Hub, Canada Alberta gas, UK NBP, and Russian Natural Gas — every six months. APM gas accounts for over 90 per cent of ONGC natural gas output.