Price of natural gas, using the formula approved by the government in October last year, is projected to fall to USD 3.22 per million British thermal unit in the first half of 2016-17 from current USD 3.82 per mmBtu.

Rates, which are set using prevalent price in gas surplus nations like the US, Russia and Canada, are fixed for six months and accordingly are projected to rise to USD 3.32 in second half of 2016-17 fiscal.

In 2019-20, gas prices are projected to reach USD 3.49. As per the mechanism approved in October, 2014, the price of domestically produced natural gas is to be revised every six months using weighted average or rates prevalent at Henry Hub of the US, National Balancing Point of the UK, rates in Alberta (Canada) and Russia with a lag of one quarter.

The current price of USD 3.82, for the period October 1, 2015 to March 31, 2016, is based on average of prices during July 1, 2014 to June 30, 2015.

Gas price in India, it said, is lower than USD 9 per mmBtu gas price in China, USD 10.5 of the Philippines, USD 6.5 of Indonesia and USD 8 per mmBtu price prevalent in Thailand and Malaysia.

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