Gas prices News

Hardeep Singh Puri refrained from commenting on OPEC's decision to cut oil production However, Puri said the move is likely to be scrutinized very carefully He said that India as one of the major consumers of oil and gas also has a major say in the global oil market

Locally produced gas in India will cost 18 percent less during October-March compared with the first half of the current fiscal year, a source with knowledge of the matter said on Wednesday, due to a decline in global prices.

Natural gas prices in India may, from October 1, fall below USD 4.2 per unit, a rate that was used last year to devise a new pricing formula to incentivise domestic exploration.

"In this context, it is important to follow the intent, purpose and commitment of the NELP Policy i.e. Maximising E&P activities, getting the risk reward balance right and providing marketing and pricing freedom. This will provide predictability and certainty to the investors," he said.

Iran will raise gasoline prices by some 40 percent, the country's official news agency reported, the latest cut to the Islamic Republic's fuel subsidies that cost it some USD 32 billion a year.

The government may allow a part of the natural gas produced by firms like ONGC and Reliance Industries from new discoveries to be sold at market price as it looks to boost domestic exploration and production.

India buys 7.5 million tonnes a year of LNG on a long-term 25 year contract, indexed to a moving average of crude oil price.

The near 8 percent cut in domestic natural gas price will help bring down urea subsidy bill by Rs 930 crore, India Ratings & Research (Ind-Ra) has said.

Natural gas prices was Tuesday cut by about 8 percent to USD 4.66 a unit to reflect the softening in international prices, a move that will lower electricity and fertiliser costs.

In the first ever reduction in domestic natural gas prices, the rates will be slashed by 9 percent to USD 4.56 per unit from April 1 to reflect the softening in international prices, benefiting users in the power and fertiliser sectors.

The Cabinet Committee on Economic Affairs on Wednesday approved a major policy intervention, through an innovative mechanism, to revive and improve utilization of the stranded gas based power generation capacity in the country.

A reduction in the global oil prices is net positive for the US economy, the White House has said, pointing out that for the first time in 2014 America is now exceeding both Saudi Arabia and Russia in oil production.

Key oil and gas sector reforms like diesel deregulation and a new gas pricing policy will have a positive impact on companies engaged in fuel retailing and gas production, says a report by Fitch Ratings.

Choudhury said the company is focusing on installing Rooftop Solar PV systems at available roof areas in power stations to meet the energy requirements of its various offices.

State-owned Oil and Natural Gas Corp (ONGC) will rake in about Rs 1,950 crore in additional profit this fiscal from the 46 percent rise in natural gas prices announced by the government.

Days ahead of its own deadline for the revision of natural gas prices, government on Wednesday postponed a decision on it by another 45 days to November 15.

Andhra Pradesh Chief Minister N Chandrababu Naidu has asked Prime Minister Narendra Modi to expedite pooling of natural gas prices to make available affordable fuel to power plants.

A four-member panel of secretaries will submit its report on a new gas pricing mechanism by Wednesday, Oil Secretary Saurabh Chandra said Monday.

Gas producers want gas prices to be raised as they feel the current USD 4.2 per mmBtu rate is insufficient to make discoveries economically viable to produce.

The UPA government-approved formula, if implemented, would have increased power tariffs by Rs 2 per unit and CNG rates by Rs 12 a kg.