The prices of natural gas are expected to reach an all time high with the upcoming revision. The government-dictated price for natural gas produced in the country is to be revised on October 1, 2022.
After considering the increase in energy prices witnessed in recent months, the prices for gas produced from old fields such as Oil and Natural Gas Corporation is likely to rise to $ 9 per million British thermal units (mmBtu) from current $ 6.1 per mmBtu. Similarly, difficult fields like the ones in Reliance Industries Limited operated D6 block in KG basin, are likely to be priced at $ 12 mmBtu compared to the current rate of $ 9.92 per mmBtu. These are the highest rates for administered/regulated fields and free-market areas.
This will be the third increase in rates since April 2019. It comes on the back of firming benchmark international prices. The increase in gas price is likely to result in a rise in compressed natural gas and piped cooking gas rates in cities, such as Delhi and Mumbai.