India’s Cabinet announced a new pricing mechanism for domestically-produced natural gas, reducing costs of piped natural gas (PNG) supplied to kitchens and compressed natural gas (CNG) for automobiles by up to 11%. The pricing mechanism will be based on 10% of India’s monthly average import price of crude oil with a floor of $4 per unit and a cap of $6.5. This decision will benefit millions of consumers across the country and incentivize oil and gas producers to ramp up output from domestic fields and make new discoveries.
