A 25 per cent downward revision in domestic gas prices for second half FY21 is bad news for India’s local gas producers. Prices were expected to be cut to $1.9 per million British thermal units (mmBtu) due to falling global gas prices, but the government set them at $1.75 per mmBtu for October 1, 2020-March 31, 2021 period, stumped the Street.
The government reviews gas prices every six months and based on formulae tied to global benchmark (in US, Europe and Japan) decides the domestic prices. The major impact of this cut will be on upstream state-owned companies like ONGC and ...
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