Reliance Industries Limited (RIL) estimates that the price of natural gas in the country may increase again in October. The company’s gas exploration business is benefiting from the rise in energy prices globally.
Sanjay Roy, senior vice president (exploration and production) at the company, said in a discussion with investors that the price ceiling for the sale of gas from the KG-D6 block could exceed the current $9.92 per million British thermal units (mmBtu). .
The government fixes gas prices every six months on the basis of international prices. Gas prices from old or regular fields have doubled to $6.1 mmBtu since April 1. At the same time, the rate for gas from difficult oil fields located in the deep sea is $ 9.92 mmBtu. The next change in gas rates is now due in October.
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In the current international scenario, it is expected that the price of gas from the fields of state-owned oil and gas company ONGC will increase to $ 9 mmBtu while it will reach in double digits for difficult oil fields. “It is expected that going forward, the gas price cap may go up to $9.92 in the first half of the financial year, followed by further increase in the second half,” Roy said.