Natural gas price may rise 57% on October 1

Domestic formula-based natural gas price would rise 57% in its next revision on October 1, triggering another round of steep price hikes for CNG and residential piped gas, ICICI Securities said in a report.The government uses an international prices-fed formula to revise domestic natural gas prices every April and October. The prices will rise to $3.15 per mmBtu in October from the current $2 per mmBtu on a net calorific value basis, as per the brokerage. The hike in domestic gas price would mean that city gas distributors “Gujarat Gas, Mahanagar Gas, and Indraprastha Gas would have to make price hikes of 10-11% in October,” the brokerage said. The city gas companies may be able to make the required hikes since competing fuels such as petrol and diesel are also very expensive, it said.

from Economic Times https://ift.tt/3E6GrhF