India has increased the price for domestic natural gas for May to $8.27 per metric million British thermal units (mmBtu) from $7.92 in April, according to the Petroleum Planning and Analysis Cell (PPAC).
The revision comes after the Cabinet Committee on Economic Affairs on April 6 approved the new pricing formula for domestic natural gas in India, which links domestic natural gas prices to global crude prices.
But the price of gas from the nomination fields of both ONGC Ltd and Oil India Ltd (OIL) will be subject to a ceiling of $6.50 per mmBtu, PPAC said. This means that the price of piped natural gas (PNG) and compressed natural gas (CNG) may remain unchanged as the two public sector units use the gas from their nomination field to supply to them. Nomination fields are those assets that the government awarded to ONGC and OIL prior to 1999.
“The price of domestic natural gas for the period of 1st May 2023 to 31st May 2023 is notified as $8.27 per mmBtu on gross calorific value (GCV) basis,” said the PPAC notification dated April 30.
Separately, on May 1, the price of commercial liquified petroleum gas (LPG) which is typically used by hotels and restaurants was reduced by Rs 171.5 per cylinder and rates of jet fuel (ATF) were reduced by 2.45 per cent. State-run oil marketing companies revised the rates in line with the softening in international oil prices.
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