New Delhi: The central government has made major cuts in domestic natural gas. The government has made this cut for the first time in two and a half years. The government has reduced prices by 12 per cent. The new price will be applicable from next October for the next six months. According to the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum, the price of natural gas of government companies ONGC and Oil India Ltd has been reduced from $ 3.69 to $ 3.23 per million British thermal units (MMBtu).

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These two companies have a major contribution to India's gas production. The government has also reduced the price of gas produced from difficult areas from $ 9.32 to $ 8.43 per unit. Natural gas prices were earlier cut on April 1, 2017. However, the prices of gas produced from the difficult fields of Reliance Industries' KG-D6 block will remain at the same level as was set in the UPA government. Natural gas is used in fertilizer and power generation. Apart from this, it is also used in homes by converting to CNG as a vehicle fuel and in cooking gas. Therefore, the price cut will have a positive impact on these areas.

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