In a notable development, the domestic gas price is set to rise after having fallen for two consecutive years. The price of domestically produced natural gas will increase by 50-60 per cent for the October 2021 to March 2022 period as per the Oil and Natural Gas Corporation. Currently, the domestic gas price is $1.79 per million British thermal units (mBtu). Meanwhile, the maximum sales price that is allowed for gas produced from high pressure high temperature, deepwater, and ultra-deepwater areas is $3.62 per mBtu.
According to an analysis by Care Ratings, 31 per cent of domestic natural gas is used by power sector, 27 per cent by fertilisers, and 19 per cent in the city gas distribution sector. India meets half of its natural gas requirements through domestic production and the remaining by imports.