Indian gas prices far below average production cost: Icra

The n h the latest marginal fall from $2.50 per mbtu for the second half of 2016-17, the domestic price is now well below the average cost of production for many producers for a sustained period, leading to losses, which has forced the industry to seek a floor price," Icra said in a report. 

 
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"The material appreciation in the Indian rupee against the US dollar, if it sustains, would have a further adverse impact on the gas producers," Icra's Senior Vice-President K. Ravichandran said.As per the new gas pricing formula approved in October 2014, gas prices are to be revised every six months. The price was $5.05 per mbtu when the formula was first applied in November 2014.