With the domestic natural gas price dipping by 51 per cent in 24 months to $2.5 per million British thermal units (mBtu), downstream companies Oil and Natural Gas Corporation (ONGC) and Oil India (OIL) are batting for a floor price of at least $4.2 a unit.
At the current price, they say, there will be no margins for producers. According to ONGC, at the current volume, the per dollar decrease in price will have an impact of Rs 4,200 crore on its gross revenue. OIL’s loss on revenue is Rs 350 crore.