India reduced the price of domestic natural gas on Monday, January 1, to $7.82 per mmBtu (million British thermal units), down from $8.47 per mmBtu in December. This adjustment brings the domestic natural gas price to its lowest level since July 2023.
"The revised prices will be applicable from January 1 to January 31, 2024," the Ministry of Petroleum & Natural Gas said in a statement.
Additionally, there have been minor adjustments in the prices of 19-kg cylinders, reflecting a decrease ranging from ₹0.50 to ₹4.50.
The price of domestic natural gas is now decided based on the price of the Indian crude basket. Earlier, the price of domestic natural gas was decided based on the price of four big gas trading hubs of the world — Henry Hub, Albany, National Balancing Point (UK) and Russian gas.
The gas price is now fixed every month. Under the old formula, the price of gas was fixed every six months.
The government had formed a committee in October 2022 to decide the new formula. The government prepared the new formula following recommendations from the committee.
Meanwhile, crude futures lost over 10% in 2023 in a year of trading marked by geopolitical turmoil and concerns about the oil output levels of major producers around the world.
Brent crude on Friday, the last trading day of 2023, settled at $77.04 a barrel, down 11 cents or 0.14%.
US West Texas Intermediate crude settled at $71.65 a barrel, down 12 cents or 0.17%.
(Edited by : Amrita)
First Published: Jan 1, 2024 9:05 AM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
BJP is planning to ban RSS, says Shiv Sena (UBT) chief Uddhav Thackeray
May 18, 2024 8:01 PM
Punjab Lok Sabha elections: Complete list of Congress candidates
May 18, 2024 4:08 PM
Punjab Lok Sabha elections: Check full list of AAP candidates and constituencies
May 18, 2024 12:59 PM
PM Modi, Rahul Gandhi election rallies in Delhi today: Here are the routes to avoid
May 18, 2024 11:28 AM