India will increase the price of locally produced gas from old fields to a record-high $6.1 per million metric British thermal units (mmBtu) from the current $2.90/mmBtu from the current $2.90/mmBtu for April-September.
see photosHigher natural gas prices will boost earnings for ONGC and Reliance Industries.
India will more than double the price of natural gas from Friday for the first half of this fiscal year, reflecting a rise in global prices, two sources familiar with the matter said, further propelling inflation in Asia’s third-largest economy. Gave.
India will raise the price of locally produced gas from old fields to a record-high $6.1 per million metric British thermal units (mmBtu) from the current $2.90/mmBtu from the current $2.90/mmBtu for April-September, sources said on Wednesday.
He said it would increase the maximum price of gas produced from more challenging fields to $9.92 per mmBtu for April-September from $6.13 per mmBtu.
India links the prices of locally produced gas from old fields to a formula linked to global benchmarks including Henry Hub, Alberta Gas, NBP and Russian Gas.
Prices will be applicable on the basis of Gross Heating Value.
The Petroleum Planning and Analysis Cell of the Federal Oil Ministry will announce the new prices on Thursday.
Higher natural gas prices will boost earnings of producers Oil and Natural Gas Corp Ltd, Oil India Ltd and Reliance Industries.
The sources declined to be identified as they are not authorized to speak to the media. The oil ministry did not respond to an email from Reuters seeking comment.
The move will push up the prices of gas sold to households, the power sector, industries and fertilizer companies, leading to overall inflation.
India’s annual retail inflation exceeded 6% in February for the second consecutive month.
Headline inflation may remain higher as fuel retailers begin a gradual increase in pump prices of gasoline and gasoline from March 21, after a hiatus of more than four months, reflecting a rise in global prices.
DBS Bank says every $10 increase in the price of a barrel of oil raises India’s consumer price index-based inflation by 20 to 25 basis points, widening the current account gap to 0.3% of GDP , and poses a downside risk of 15 basis points. Development.
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