India Cuts Domestic Gas Prices 18% Amid Global Energy Slump
- Reduction may squeeze profit margins at ONGC, Reliance
- City gas and fertilizer firms to benefit from low prices
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India reduced the price of locally produced natural gas by 18 percent for six months beginning Oct. 1, hurting producers including Oil & Natural Gas Corp., Oil India Ltd. and Reliance Industries Ltd.
The price will be cut to $3.82 per million British thermal units based on the gross heat value, according to the oil ministry’s Petroleum Planning and Analysis Cell. Rates were fixed at $4.66 per million Btu for the last six months. The price based on the net heat value will be $4.24, an oil ministry official, who asked not to be identified because of rules, told reporters on Wednesday in New Delhi.