Gas Pricing Essay Example

overnment. The new bidding system would award contracts to companies that are willing to produce the highest amount of oil or gas. Increasing natural gas prices will entice foreign majors to invest in untapped resources in the deep and ultra-deep water frontier basins, as well as reducing the steep energy import bill and incentivizing domestic producers. Increased gas prices would result in additional royalties and profits for both the government and public sector producers, such as. Furthermore, it will improve power generation and fertilizer production while supporting efforts to revive India's flagging gross domestic product growth which reached a decade-long low this year.