India to Cut Price of Domestically Produced Gas

India will most likely cut price of domestically produced natural gas by over 10 percent to $5.02 per unit from April 1, Press Trust of India reported Wednesday.

The cut is expected because of decline in gas prices at key international hubs. The government had in October 2014 used a new formula to fix price of almost all domestically produced natural gas.The rates were to be revised every six month using average price at Henry Hub of US, National Balancing Point of UK, rates in Alberta (Canada) and Russia with a lag of one quarter, Press Trust said.

So, rate for April 1 to September 30 would be based on average price at the international hubs during January to December 2014.

This will be the first reduction in natural gas in India.