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The rate paid for gas produced from old fields, which make up for about two-thirds of all gas produced in the country, was hiked to USD 8.57 per million British thermal units from the current USD 6.1, according to an order from the oil ministry's Petroleum Planning and Analysis Cell (PPAC).
In view of the global markets, the prices of gas in India have been hiked by 40 percent on Friday, giving rise to record high inflation in basics.
Spike in rates will add to inflationary pressure in economy as it is used to generate electricity, make fertiliser and is converted into CNG to run automobiles
A steep increase in prices is likely to make CNG and piped natural gas (PNG) costs higher, which have already risen more than 70 per cent in the last year. Moreover, this is also the third increase in natural gas rates since April 2019.
Prices of natural gas, which is used to generate electricity, make fertiliser and is converted into CNG to run automobiles, were on Friday hiked by a steep 40 per cent to record levels, in step with global firming up of energy rates.