India's latest effort to attract foreign investors comes as no surprise. Recently, a massive exit of foreign investors from the company occurred, leaving the Republic of India's market in a very volatile situation. India announced that it approved its proposed doubling of natural gas prices. This move, considered to have major political implications, is set to be initiated simultaneous with the country's upcoming election next year.
Raising the prices of gas will for three years will hopefully increase investment in the sector. Costs of common services such as electricity, water, fertilizer, transport fuel, and cooking gas will be affected by this move by the Indian government.
The price of natural gas that is domestically produced currently sits at US$4.20 per unit. After the elections, the price will double to US$8 per unit.
"It is more than expected. We expected up to $6.70 (per unit). This is really positive. It will encourage us to invest more in exploration," said TK Ananth Kumar, finance director at government owned Oil India.
Join the Conversation