Fitch cuts India's gas consumption growth to 5 pc on high prices

Fitch Ratings downgraded India's gas consumption forecast for the current fiscal year to 5% growth, citing a recent jump in domestic gas prices and high LNG rates as factors slowing the transition to the environmentally beneficial fuel. For the six-month period beginning April 1, the government more than doubled the price of gas from domestic fields to USD 6.1 per million British thermal unit. "We expect natural gas consumption in India to grow by 5% in FY23 (FY22 estimate: 6.5%), down from our previous estimate of 7% growth, as the recent sharp increase in domestic gas prices and high LNG prices - both spot and term contracts linked to oil prices - will, in our opinion, slow the shift to natural gas," the rating agency said.

Domestic gas production fulfils around half of current use, with the rest coming from liquefied natural gas imports (LNG). The recent spike in spot LNG prices to levels far higher than the long-term contracted LNG from the United States, according to Fitch, will likely improve GAIL (India) Ltd's profitability from its natural gas marketing division. Oil marketing companies may be required to raise prices further’

Oil marketing companies may be required to raise prices further’

Ola-Uber and cab drivers go on strike in Lucknow today along with Delhi, demand fare hike

Auto and taxi drivers strike in Delhi today, this demand placed before the government

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