The government on Thursday hiked by 62 percent, the price of natural gas that is used in households for cooking and is turned into CNG for use as fuel in automobiles.

This is the first increase in rates since April 2019 and comes on back of firming benchmark international prices but does not reflect the spurt in spot or current price of liquefied natural gas (LNG) witnessed during the last couple of weeks.

The oil ministry’s Petroleum Planning and Analysis Cell (PPAC) said the rates paid for gas produced from fields given to state-owned Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) will be $2.90 per million British thermal units for the six-month period beginning April 1.

The Petroleum Ministry’s Petroleum Planning and Analysis Cell (PPAC) said the rates paid for gas produced from fields given to state-owned Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) will be $2.90 per million British thermal units (mmBtu) for the six-month period beginning October 1, 2021.

Petroleum Planning and Analysis Cell (PPAC), a unit of the Oil Ministry, said the rates paid for gas produced from fields given to Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) will be $2.90 per million British thermal units (mmBtu). The new price will be applicable for the six-month period beginning April 1. Simultaneously, the price for gas produced from difficult fields such as deep sea, which is based on a different formula, was hiked to $6.13 per mmBtu from the $3.62 per mmBtu. This is the maximum price that Reliance Industries Ltd and its partner BP plc are entitled to for the gas they produce from deep-sea blocks such as KG-D6.

Sabyasachi Majumdar, Senior Vice-president & Group Head (Corporate Sector Ratings) of ICRA, said the domestic gas price increase was driven by the significant run-up in the prices of gas at global gas hubs.