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Centre mulls new gas policy, launching gas exchange

Monday, 11 May 2020
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The Central government is considering bringing in a new gas policy as well as launching a gas exchange very soon as part of reforms to promote greater use of environment-friendly fuel.

Natural gas prices in India have fallen to their lowest in more than a decade. Prices of natural gas that is used to produce fertilisers, generate electricity and gets converted into CNG for use in automobiles and piped natural gas for household cooking were from 1 April 2020 cut to USD 2.39 per million British thermal unit -- a rate about 37 percent lower than the cost of production.

The Central government in October 2014 evolved a new pricing formula using rates prevalent in gas surplus nations like the US, Canada and Russia to determine the price in a net importing country. Prices using this formula are calculated semi-annually.

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