The Petroleum Planning and Analysis Cell of the Union Ministry of Petroleum and Natural Gas on 30 September 2015 announced that the price of domestic natural gas was slashed by 18 percent to 3.81 US dollars per mmBtu.
It was reduced from 4.66 US dollars per mmBtu on gross calorific value (GCV) basis that had been in force since 1 April 2015.
The new price that came into effect on 1 October 2015 will be operational for six months till 31 March 2016.
The reduction in price is likely to benefit power and fertilizer firms but it may also hurt producers like Reliance Industries and Oil and Natural Gas Corportaion Limited (ONGC).
The revision in the gas price was taken as per the New Domestic Natural Gas Pricing Guidelines that has been in force since 1 October 2014.
As per the policy, the government revises the price every six months on the basis of a weighted average of rates in the gas-surplus economies such as Canada, the USA, Russia and Mexico.
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When: 30 September 2015