Natural gas prices were cut by a steep 18% to $3.82 per unit on Wednesday, the biggest ever reduction in rates so far. This reduction will dent government revenues by about Rs. 800 crore and hit profits of producers like Oil and Natural Gas Corp (ONGC).
Natural gas prices, as per the formula approved by the government in October last year, will fall to $3.82 per million British thermal unit (mmBtu) on gross calorific value (GCV) basis for six months, beginning October 1, from the current %4.66 per mmBtu, according to the Oil Ministry.