As new liquefied natural gas (LNG) projects start commissioning, prices will settle down to normal level as supply increases, said BC Tripathi, Chief Managing Director, GAIL.
India's state-owned natural gas utility, GAIL, has recently switched its focus to short-term and spot deals for the purchase of LNG to meet rising demand and hedge against price volatility.
Speaking to CNBC-TV18, Tripathi said the company is not a beneficiary, when the prices are high for consumers as the increase is because of market moments based on supply-demand situations.
However, the company is focusing on how to optimise the supply, and cut down the cost of procurement, shipping with various optimisation tools, so that prices are affordable to the consumers, Tripathi added.
According to him, prices will remain at the current levels and expect to come down because of some global changes and increase in China’s LNG demand.
Tripathi said the proposed hike in transmission tariffs is due to to low capacity utilisation of the pipeline and any infrastructure projects cannot sustain longer if it's not given assured or reasonable rate of return.
Discussions with government and Petroleum and Natural Gas Regulatory Board (PNGRB) is on and aim is to create a situation, where it's balance for all the consumers and for the companies investing in the infrastructure, he said.