Gas prices may dip in October 1 below $ 4.2/unit

 Natural gas prices in India may, from October 1, fall below $4.2 per unit, a rate that was used last year to devise a new pricing formula to incentivise exploration.

Using prevailing price in gas surplus nations like the US, Russia and Canada, the government had in October last year announced a new pricing formula that led to rates rising by about 33 per cent to $5.61 per million British thermal unit (mmBtu) for a period up to March 31, 2015, from the long-standing price of $4.2.

The rates, on net calorific value (NCV) basis, dropped to $5.05 per mmBtu for six month period beginning April 1, 2015.  “Preliminary calculations based on average price in the gas hubs stated in the formula indicate that the rate from October 1 is likely to be $4.16 or $4.17 per mmBtu on NCV basis," an official said.