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India Cuts January 2024 Natural Gas Price to USD 7.82 per mmBtu

This marks a decrease from the previous price of USD 8.47 per mmBtu in December 2023.

January 02, 2024. By Abha Rustagi

India has announced a reduction in the price of domestic natural gas, setting it at USD 7.82 per million British thermal units (mmBtu) for January 2024, according to the Petroleum Planning and Analysis Cell (PPAC) statement.

"The price of domestic natural gas for the period 1st January 2024 to 31st January 2024 is notified as USD 7.82/mmBtu on Gross Calorific Value (GCV) basis," said the PPAC statement.

This marks a decrease from the previous price of USD 8.47 per mmBtu in December 2023, reaching the lowest level since July 2023. The announcement is expected to positively impact both households and industries by providing a slight reprieve in energy costs.

The decision to revise the pricing mechanism stems from a committee formed by the government in October 2022. This committee worked towards formulating a new formula, which has now been adopted by the government.

The shift to monthly adjustments is intended to align domestic gas prices more closely with the dynamic global crude oil market, offering a more responsive and adaptive pricing mechanism.

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