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The 18 per cent cut in domestic gas price to $3.82 a unit from $4.66 a unit, on gross calorific value basis, saw the stock of city gas distributor (CGD) Indraprastha Gas gain about 4 per cent last Wednesday. The new price, applicable from October 2015 to March 2016, will mean cheaper sourcing for CGDs which get priority in domestic gas allocation.
The price cut is bad news for ONGC and Oil India which produce most of the gas in the country.
This is the second consecutive cut since the domestic gas pricing formula was adopted last November.
The price is back to levels it was before the formula was adopted. Reliance Industries though will not be impacted — it is being paid the old rate with the difference credited to a gas pool account until its dispute with the government reaches closure.
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