The government today cut natural gas prices for power and fertiliser sector by 16 per cent to USD 4.24 per unit for the six month period, beginning October 1st.
Natural gas prices, according to a formula approved by the government in October last year, will fall to 4.24 US dollar million British thermal unit (mmbtu) on net calorific value (NCV) basis from the current 5.50 US dollar mmbtu.
On gross calorific value (GCV) basis, the new gas price for October 1st to March 31st would be 3.82 us dollar per mmBtu as compared to 4.66 us dollar currently.
The price cut is the second reduction in rates ever – the first being on April 1st.