Photo: BloombergNew Delhi:The government has raised natural gas price by 6% to its highest level in two years, a move that will result in higher CNG and cooking gas prices. Natural gas prices are set every six months based on average rates in gas-surplus nations like the US, Russia and Canada. Every dollar increase in gas price results in Rs4,000 crore additional revenue for PSUs on an annual basis. Gas price was last hiked to $2.89 per mmBtu for October 2017 to March 2018 period from $2.48 in the previous six months. Additionally, the appreciation of the Indian rupee against the US dollar in FY2018 also dampens the realisations of the gas producers.

Source: Mint March 29, 2018 14:26 UTC