Moneycontrol PRO
HomeNewsBusinessGovt raises domestic natural gas prices to $8.17 per mmBtu for March

Govt raises domestic natural gas prices to $8.17 per mmBtu for March

The domestic natural gas price, however, will continue to remain at $6.5 for the month, as per the formula used for the calculation of prices.

February 29, 2024 / 14:01 IST
The domestic gas price notified by the government applies to the natural gas produced from the legacy and oil fields of Oil and Natural Gas Corporation Ltd (ONGC) and Oil India Limited (OIL).

The price of domestic natural gas has been increased to $8.17  per million metric British thermal units (mmBtu) for March from $7.85 in the previous month, the oil ministry said in a notification.

The domestic natural gas price, however, will continue to remain at $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 $4 per mmBtu and $6.5 per mmBtu, respectively. The price stood at $6.5 per mmBtu in January and February as well.

The domestic gas price notified by the government applies 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 pricing is linked with imported crude pricing and would be at 10 percent of the Indian crude basket. The prices are revised every month.

The new pricing formula kicked in after a government-appointed panel led by energy expert and former Planning Commission (since renamed NITI Aayog) member Kirit Parikh recommended several changes in gas pricing to insulate domestic players and consumers from the volatility in global markets.

Team Moneycontrol
first published: Feb 29, 2024 02:00 pm

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Subscribe to Tech Newsletters

  • On Saturdays

    Find the best of Al News in one place, specially curated for you every weekend.

  • Daily-Weekdays

    Stay on top of the latest tech trends and biggest startup news.

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347