Prices of Natural gas

Prices of natural gas vary widely in india both at the producer level and the consumer level. At the producer level there are 6 different prices prevailing in india depending on the source of the gas. Below is a list of different gas sources

1. KG D6 
2. APM - Others
3. APM - NE
4. PMT
5. LNG- Spot
6. LNG - Long term 

Disparity in the prices that the end consumers pay is dependent on two things 

1. The source from which the gas allocation has happened
2. The sector to which the company belongs

Confused?? as to how the sector to which the company belongs can have different prices, well here it is 

1. The transportation sector and and small consumers (drawing less than 0.05mmscmd) pay Rs.3840/tscm while all other industrial consumers pay Rs. 8675/tscm and the power and fertilizers sector pay Rs. 3200/tscm. These gas prices have been in effect since June 6.2006. The other sector includes customers like petrochemicals, sponge iron and ceramics.

But even after the increase in prices of Natural gas, it remains competitive w.r.t to other fuels as shown in the diagram attached.