India raises natural gas price by 10% to $8.6 per unit for September

The union government on Thursday announced monthly price revision in domestic natural gas price with price for the month of September being fixed at $8.60 per mmBtu (metric million British thermal units). This marks an increase of 10 percent compared to the preceding month's rate of $7.85 per mmBtu.

The fixation of new prices aligns with the new regulations introduced in April of this year. The new norms tie the natural gas price to the broader context of global oil markets. Specifically, the price for any given month is determined as 10 percent of the prevailing crude basket level. Over the last month, the Indian crude basket has maintained a range of $85 to $89 per barrel, underscoring the ongoing upward trend.

This latest pricing decision signifies a noteworthy increase, reflecting the persistent rise in crude oil prices. The last instance when the natural gas price reached a similar level was at the time of the implementation of these new regulations. During the period from April 1 to April 7, 2023, the price had been fixed at $9.16 per mmBtu.

The backdrop to this development is the consistent growth in the average Brent crude price. While July witnessed a rate of $76 per barrel, the average Brent crude price for August surged to around $87 per barrel. This surge illustrates the robust nature of the energy market and the various interconnected factors shaping its trajectory.