NEW DELHI: Locally produced gas in India will cost 18 per cent less during October to March compared with the first half of the current fiscal year, a source with knowledge of the matter said on Wednesday, due to a decline in global prices.

Prices will be cut to $3.82 per million British thermal units (mmBtu) in the second half of this fiscal year on gross heat value basis, the source, who is not authorised to speak to the media, told Reuters. It will cost about $4.24 mmBtu on a net heat value basis compared with $5.18 per mmBtu in April to September, the source said.

India introduced a new gas-pricing formula last November. The formula links the prices of locally produced gas with those in the United States, Canada, the United Kingdom and Russia.