Government Announces Domestic Gas Price Hike
OIL & GAS

Government Announces Domestic Gas Price Hike

The Indian government has unveiled its decision to hike the domestic gas price for the month of June, setting it at $8.44 per million metric British thermal units (MMBtu) for gas produced from fields operated by ONGC and Oil India Ltd, with a ceiling price of $6.50 per MMBtu for deepwater, ultra-deepwater, and high-pressure high-temperature fields.

The move comes amidst a backdrop of increasing global energy prices and aims to incentivize domestic gas production, bolstering the country's energy security and reducing its reliance on imports. This decision is poised to have significant implications for the energy sector in India, impacting both consumers and producers.

Description: The Indian government's recent announcement to raise the domestic gas price in June marks a strategic move aimed at fortifying the nation's energy landscape. With the price set at $8.44 per MMBtu for gas sourced from fields operated by ONGC and Oil India Ltd, and a ceiling price of $6.50 per MMBtu for specific categories, the decision underscores a concerted effort to stimulate domestic gas production.

This development assumes heightened significance against the backdrop of escalating global energy prices, underscoring the imperative for India to bolster its energy security and diminish its dependence on imports. By incentivizing domestic gas production, the government seeks to cultivate a more self-reliant energy ecosystem, a vital step towards achieving energy sufficiency.

The implications of this decision are multifaceted, impacting various stakeholders within the energy sector. For consumers, it may entail adjustments in gas prices, potentially affecting household budgets and industrial operations. Meanwhile, for gas producers like ONGC and Oil India Ltd, the revised pricing mechanism could influence investment decisions and operational strategies.

Furthermore, this move is poised to stimulate broader discussions surrounding energy policy and resource management in India. It underscores the intricate interplay between economic considerations, environmental sustainability, and energy sovereignty. As the nation navigates the complexities of its energy transition, the government's decision to revise domestic gas prices stands as a pivotal moment in shaping the trajectory of India's energy landscape.

The Indian government has unveiled its decision to hike the domestic gas price for the month of June, setting it at $8.44 per million metric British thermal units (MMBtu) for gas produced from fields operated by ONGC and Oil India Ltd, with a ceiling price of $6.50 per MMBtu for deepwater, ultra-deepwater, and high-pressure high-temperature fields. The move comes amidst a backdrop of increasing global energy prices and aims to incentivize domestic gas production, bolstering the country's energy security and reducing its reliance on imports. This decision is poised to have significant implications for the energy sector in India, impacting both consumers and producers. Description: The Indian government's recent announcement to raise the domestic gas price in June marks a strategic move aimed at fortifying the nation's energy landscape. With the price set at $8.44 per MMBtu for gas sourced from fields operated by ONGC and Oil India Ltd, and a ceiling price of $6.50 per MMBtu for specific categories, the decision underscores a concerted effort to stimulate domestic gas production. This development assumes heightened significance against the backdrop of escalating global energy prices, underscoring the imperative for India to bolster its energy security and diminish its dependence on imports. By incentivizing domestic gas production, the government seeks to cultivate a more self-reliant energy ecosystem, a vital step towards achieving energy sufficiency. The implications of this decision are multifaceted, impacting various stakeholders within the energy sector. For consumers, it may entail adjustments in gas prices, potentially affecting household budgets and industrial operations. Meanwhile, for gas producers like ONGC and Oil India Ltd, the revised pricing mechanism could influence investment decisions and operational strategies. Furthermore, this move is poised to stimulate broader discussions surrounding energy policy and resource management in India. It underscores the intricate interplay between economic considerations, environmental sustainability, and energy sovereignty. As the nation navigates the complexities of its energy transition, the government's decision to revise domestic gas prices stands as a pivotal moment in shaping the trajectory of India's energy landscape.

Next Story
Building Material

JK Lakshmi Cement posts Rs 190.24 mn loss in Q2; revenue dips 2.2%

JK Lakshmi Cement reported a consolidated net loss of Rs 190.24 million for the second quarter ending September 30, 2024, attributing the downturn to a drop in sales realisation. This was a significant change from the previous year when the company recorded a profit of Rs 950.87 million during the same period, as indicated by JK Lakshmi Cement (JKCL), the flagship company of JK Organisation. Revenue from operations for the September quarter decreased by 2.16 per cent to Rs 12.34 billion, compared to Rs 15.74 billion in the year-ago period. Additionally, JKCL's total expenses were slightly low..

Next Story
Infrastructure Energy

Epsilon partners with S Korean firm for high-capacity Li-ion batteries

Battery material manufacturer Epsilon Advanced Materials announced that it has partnered with South Korean firm Daejoo to develop a Silicon-Graphite composite aimed at enhancing the discharge capacity of lithium-ion batteries. Under this joint initiative, the two companies have set an ambitious goal to create materials for lithium-ion batteries with a capacity of 450 - 600 mAh/g, targeting a 50 per cent increase in discharge capacity and a life span extended by thousands of cycles, according to Epsilon. As part of this collaboration, Epsilon will supply synthetic Graphite to be utilised in..

Next Story
Infrastructure Transport

Govt plans next phase of airport privatisation in 2025-26 Budget

The central government is preparing to initiate the next phase of airport privatisation and development under the public-private partnerships (PPP) model following the 2025-26 Budget, as per information from three officials familiar with the plans. According to a senior official from the Ministry of Civil Aviation, the cabinet note outlining the next phase of airport privatisation is nearly finalised and will be presented to the Ministry of Finance next week, before being forwarded for Cabinet approval. The official further indicated that the central government is keen to begin this process ..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000