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The prices of domestic natural gas has been reduced to USD 8.44 per million metric British thermal units (mmBtu) for June 2024 from USD 8.90 in the previous month, the oil ministry said in a notification.
However, according to the formula used to calculate prices, the domestic natural gas price will remain at USD 6.5 for the month.
According to the new gas pricing mechanism, domestic gas prices are now subject to a floor and ceiling of USD 4 per mmBtu and USD 6.5 per mmBtu, respectively.
The government notified the domestic gas prices, which apply to 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 prices are linked with imported crude oil prices, which would be 10 per cent of the Indian crude basket. The domestic natural gas prices are revised every month.
The new pricing formula was kicked off after a government-appointed panel led by former NITI Aayog member and energy expert Kirit Parikh recommended several changes in gas pricing to insulate domestic players and consumers from the volatility in global markets.
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