India reduced the prices of domestic natural gas: Revised prices will be in effect from today

On Monday, January 1, India lowered the price of domestic natural gas from $8.47 per mmBtu (million British thermal units) in December to $7.82 per mmBtu. With this adjustment, the price of natural gas is at its lowest point since July 2023.

This updated price will take effect on January 1 and run through January 31, 2024, according to a statement from the Ministry of Petroleum and Natural Gas.

A decrease in price of 19-kg Cylinder

Furthermore, there have been slight pricing adjustments for 19-kg cylinders, with a drop from Rs. 0.50 to Rs. 4.50.

These days, the price of the Indian crude basket determines the price of natural gas sold domestically. Previously, the price of Russian gas, Henry Hub, Albany, National Balancing Point (UK), and the other four major global gas trading hubs determined the price of domestic natural gas.

Priorly, prices were determined every 6 months

These days, the monthly price of gas is predetermined. Every six months, the price of gas was set using an old formula. In October 2022, the government established a committee to determine the revised formula.  This new formula is being determined considering the committee's suggestions.

In contrast, during a year of trade characterized by geopolitical unrest and worries over the levels of oil output of key producers worldwide, crude futures saw a loss of more than 10% in 2023.

On Friday, the final trading day of 2023, Brent crude finished the day at $77.04 per barrel, down 11 cents, or 0.14%.

Also read:  Central Government plans to lower the price of gas and diesel to help consumers

US West Texas Intermediate crude finished the day down 12 cents, or 0.17%, at $71.65 per barrel.

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