Government Announces Domestic Gas Price Hike

04 Jun 2024 CW Team

The move comes amidst a backdrop of increasing global energy prices and aims to incentivize domestic gas production, bolstering the country's energy security and reducing its reliance on imports. This decision is poised to have significant implications for the energy sector in India, impacting both consumers and producers.

Description: The Indian government's recent announcement to raise the domestic gas price in June marks a strategic move aimed at fortifying the nation's energy landscape. With the price set at $8.44 per MMBtu for gas sourced from fields operated by ONGC and Oil India Ltd, and a ceiling price of $6.50 per MMBtu for specific categories, the decision underscores a concerted effort to stimulate domestic gas production.

This development assumes heightened significance against the backdrop of escalating global energy prices, underscoring the imperative for India to bolster its energy security and diminish its dependence on imports. By incentivizing domestic gas production, the government seeks to cultivate a more self-reliant energy ecosystem, a vital step towards achieving energy sufficiency.

The implications of this decision are multifaceted, impacting various stakeholders within the energy sector. For consumers, it may entail adjustments in gas prices, potentially affecting household budgets and industrial operations. Meanwhile, for gas producers like ONGC and Oil India Ltd, the revised pricing mechanism could influence investment decisions and operational strategies.

Furthermore, this move is poised to stimulate broader discussions surrounding energy policy and resource management in India. It underscores the intricate interplay between economic considerations, environmental sustainability, and energy sovereignty. As the nation navigates the complexities of its energy transition, the government's decision to revise domestic gas prices stands as a pivotal moment in shaping the trajectory of India's energy landscape.

The Indian government has unveiled its decision to hike the domestic gas price for the month of June, setting it at $8.44 per million metric British thermal units (MMBtu) for gas produced from fields operated by ONGC and Oil India Ltd, with a ceiling price of $6.50 per MMBtu for deepwater, ultra-deepwater, and high-pressure high-temperature fields. The move comes amidst a backdrop of increasing global energy prices and aims to incentivize domestic gas production, bolstering the country's energy security and reducing its reliance on imports. This decision is poised to have significant implications for the energy sector in India, impacting both consumers and producers. Description: The Indian government's recent announcement to raise the domestic gas price in June marks a strategic move aimed at fortifying the nation's energy landscape. With the price set at $8.44 per MMBtu for gas sourced from fields operated by ONGC and Oil India Ltd, and a ceiling price of $6.50 per MMBtu for specific categories, the decision underscores a concerted effort to stimulate domestic gas production. This development assumes heightened significance against the backdrop of escalating global energy prices, underscoring the imperative for India to bolster its energy security and diminish its dependence on imports. By incentivizing domestic gas production, the government seeks to cultivate a more self-reliant energy ecosystem, a vital step towards achieving energy sufficiency. The implications of this decision are multifaceted, impacting various stakeholders within the energy sector. For consumers, it may entail adjustments in gas prices, potentially affecting household budgets and industrial operations. Meanwhile, for gas producers like ONGC and Oil India Ltd, the revised pricing mechanism could influence investment decisions and operational strategies. Furthermore, this move is poised to stimulate broader discussions surrounding energy policy and resource management in India. It underscores the intricate interplay between economic considerations, environmental sustainability, and energy sovereignty. As the nation navigates the complexities of its energy transition, the government's decision to revise domestic gas prices stands as a pivotal moment in shaping the trajectory of India's energy landscape.

Infrastructure Energy

17 Dec 2025

Vedanta Aluminium Uses 1.57 bn Units of Green Energy in FY25

Vedanta Aluminium, India’s largest aluminium producer, recently reported consumption of 1.57 billion units of renewable energy in FY25, marking a significant milestone in its 2030 decarbonisation roadmap. The company also achieved an 8.96 per cent reduction in greenhouse gas (GHG) emissions intensity compared to FY21, reinforcing its leadership in India’s low-carbon manufacturing transition. During FY25, Vedanta Aluminium expanded its renewable energy portfolio through long-term power purchase agreements, strengthening its strategy to source nearly 1,500 MW of renewable power over the lon..

Real Estate

17 Dec 2025

Oberoi Group to Develop Luxury Resort at Makaibari Tea Estate

EIH Limited, the flagship company of The Oberoi Group, has announced the signing of a management agreement to develop an Oberoi luxury resort at the iconic Makaibari Tea Estate in Darjeeling. The project marks a key milestone in the Group’s long-term strategy of creating distinctive hospitality experiences in rare and environmentally significant locations. Established in 1859, Makaibari is one of the world’s oldest tea estates and is globally recognised for its Himalayan landscape, primary forests and exceptional biodiversity. Spread across 1,236 acres, the estate houses one of the world�..

Real Estate

17 Dec 2025

GHV Infra Secures Rs 1.09 Bn EPC Order in Jamshedpur

GHV Infra Projects Ltd, a fast-growing EPC company in India’s infrastructure and construction sector, has recently secured a Rs 1.09 billion work order in Jamshedpur, Jharkhand. Awarded by a reputed group entity, the contract covers end-to-end civil construction, mechanical, electrical and plumbing (MEP) systems, along with high-quality finishing works for a large building development. The project will be executed over a 30-month period, with defined benchmarks for quality, safety and timely delivery. The order strengthens GHV Infra’s footprint in Jamshedpur, a key industrial hub known fo..