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NEW DELHI - India has cut the price of locally produced gas for the April-September 2020 period by more than a quarter to a multi-year low of $2.39 per million metric British thermal units (mmBtu), the government said on Tuesday.
This would be the lowest price since 2014, when the nation began linking local rates to a formula linked to global benchmarks, including Henry Hub, Alberta gas, NBP and Russian gas.
It also set the ceiling price for gas produced from more challenging fields at $5.61 per mmBtu for the same period, down about 33.5% from the prior six-month period the statement showed.
The prices will be applicable on gross heat value basis.
Lower natural gas prices mean reduced costs for gas for fertilisers, automobiles and households. They will also cut earnings for state-owned Oil and Natural Gas Corp Ltd and Oil India Ltd.
(Reporting by Nidhi Verma, editing by Louise Heavens)