Govt sets May domestic gas price at $8.90/mmbtu, with ONGC/OIL ceiling at $6.50/mmbtu

New Delhi: The Petroleum Planning & Analysis Cell (PPAC) of the Ministry of Petroleum and Natural Gas (MoPNG) has announced the domestic natural gas price for May 2024 at $8.90 per million British thermal units (mmbtu) on a Gross Calorific Value (GCV) basis.

The PPAC’s notification also states that for gas produced by Oil and Natural Gas Corporation (ONGC) and Oil India Limited (OIL) from their nomination fields, a ceiling price of $6.50/mmbtu on a GCV basis will apply for the same period.

The pricing decision is part of India's ongoing effort to manage its natural gas sector effectively and balance the needs of producers and consumers. The new price follows the guidelines set forth by the MoPNG's notification in April 2023, which established the framework for monthly price updates.

Key stakeholders, including the Directorate General of Hydrocarbons, ONGC, OIL, and GAIL, have been informed of the new pricing structure, ensuring a coordinated approach in managing India's natural gas sector.

The new pricing reflects India's efforts to align its energy policies with global standards while supporting domestic production and ensuring fair pricing for all stakeholders. The government's monitoring of global energy markets, coupled with its policy framework, aims to stabilize pricing and maintain growth in the country's natural gas sector.