By Yashi Gupta Oct 2, 2021 6:28:33 PM IST (Published)
Gas prices have risen globally to multi-year highs as the market first reeled from the impact of the pandemic and now can't keep up with the rising global demand. While this is a normal trend for commodities, natural gas supplies are the worst hit. In India, we have already seen over 60 percent hike in natural gas prices. Elsewhere in Asia, importers are paying record prices for gas this year.
The government has raised the prices of natural gas by 62 percent under the domestic price regime, for the first time after April 2019. The price rise will be different for different natural gas fields and will be applicable from October 1 to March 31.
Natural gas deposits are found on land, while some are offshore, some deep under the ocean floor. Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) produce natural gas from offshore fields. And the price paid to them will increase to $2.90 million British thermal units (mmBtu).
The prices for deep-sea field producers -- such as Reliance Industries and its partner BP Plc -- will rise from $3.62 to $6.13 per mmBtu. This price range is the same for fields in ultra-deepwater and high pressure-high temperature areas.