Policy & Regulation

Indian gas demand to grow regardless of price hike

India’s gas consumption is expected to increase over the coming years even though domestic prices will rise India’s gas consumption is expected to increase over the coming years even though domestic prices will rise.
By Andrew Walker 9 October 2017 0 27903
indian gas plant A gas-fired power plant in India. (Essar)

The 13% increase in India’s domestic gas prices announced at the beginning of the month is unlikely to have a major impact on demand, experts have said.

The hike is India’s first since it introduced a new pricing formula in late 2014, and the price of gas has fallen by around half since then. The price rise will last for the six-month period from October to April.

The fertiliser, power and petrochemicals sectors are the biggest consumers of gas in India. Gas prices for the fertiliser...