The cut reflects the reduced international hub prices. International crude oil prices have also fallen to record low over last year, before recovering somewhat over the last couple of months.
The government in October 2014 announced an upward revision to $5.61 per unit against the industry’s demand for at least doubling it to a little over $8 per unit, as per the Rangarajan panel recommendations.
However, accepting the Rangarajan panel recommendations would have meant a gas price of $8.4 per unit, instead of $5.6 effective from November 2014 for five months. The domestic natural gas price is supposed to be revised every six months. (IANS)