Gas price: Reliance estimates that gas prices may increase again in October
New Delhi: Reliance Industries Limited estimates that natural gas prices in the country may rise again in October. Gas retail prices are already at all-time highs ahead of global energy price hikes, benefiting the company’s gas exploration business. The company’s senior vice president (exploration and production) Sanjay Rai, while talking to investors, said the gas price cap (sale price cap) from the KG-D6 block could exceed the current $9.92 per million British thermal unit (mmBtu). ,
The government fixes the price of gas on the basis of international prices every six months. From April 1, the price of gas from the old or regular fields has doubled to 1 6.1 mmBtu. In addition, gas from difficult areas such as the deep sea costs 9.92 mmBtu. Currently, the next change in gas prices is expected in October, with Reliance Industries Limited predicting a further increase in gas prices.
Looking at the current international situation, it is estimated that the gas price from the old fields of the state-owned Oil and Natural Gas Corporation (ONGC) will be around ₹99 per mm. Double digit growth. “Going forward, the gas price is expected to increase to $9.92 in the first half of the financial year and then further in the second half,” Roy said.
“Indeed, we have seen price increases, because we know gas markets are tight and prices have risen, and now we are seeing better EBITDA margins as well as impact on revenues,” Roy said.