Slash down on rates for extracting natural gas
The central government has decided to slash down the rates for extracting natural gas. In October 2014, the government gave its nod for rules on setting tariff. Due to this reduction in rate, Reliance Industries and ONGC will have to pay lesser to the government.
At present, for 10 lakh British Thermal Units, 3.06 dollar is quoted. By reducing 20 percent from this, the overall amount will reduce to 2.45 dollar. This will come into effect from 1st October, said one of the senior government o officials.
Earlier, on 1st April, the rate was reduced from 3.82 dollar to 3.06 dollar. In October, there is going to be yet another reduction in rate and this will be the 4th revision in rates in the past 18 months. With this, domestic gas cylinders are likely to be available at cheaper rates. Since October 2014, there has been 39 percent reduction in rate on the whole.
