India increases gas prices starting April

India's government website revealed on Monday that the price for its locally produced oil field gas has increased by almost 4%, to $6.75/million metric British Thermal Units (mmBtu), compared to $6.50/mmBtu the previous month.

This is the first price revision for gas produced in old fields in two years. India set a price cap of $6.50 for two years in 2023. The third year will see a 25-cent increase per annum.

The website of the Petroleum Planning and Analysis Cell, part of the Ministry of Oil, showed that India had also set a ceiling price of $10.04 per million Btu of gas produced from difficult areas for the months of April to September, up from $10.16 in the six-month period prior.

Prices will be based on the gross value of heat.

The higher prices of natural gas from oil fields will increase earnings for Oil and Natural Gas Corp and Oil India, while increasing prices for industrial buyers and firms in the fertiliser and gas distribution sector. (Reporting and editing by Kirby Donovan; Nidhi verma)

(source: Reuters)