India will revise its domestic gas prices in April, with producers calling for a rise to support indigenous output.
The revision of India’s gas prices in April will set the price for most domestically produced gas for the next six months. Producers have complained that the current price for domestic gas, $2.50/MMBtu, is too low to produce the fuel economically. The ceiling price for technically challenging gas is $5.30/MMBtu, but this applies only to deepwater, ultra-deepwater, and high-pressure/high-temperature gas. The formula for setting the domestic price is linked to a basket of international prices, including the NBP and the Henry Hub, but the exact calculations used to determine the price are confidential. There has been speculation that prices could rise by as much as 8%; this may prove high. Nevertheless, producers are calling for a rise to incentivise domestic production.
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