This would be the lowest price since 2014, when the nation began linking local rates to a formula tied to global benchmarks, including Henry Hub, Alberta gas, NBP and Russian gas.

It also set the ceiling price for gas produced from more challenging fields at $4.06 per mmBtu for the same period, down 27.6% from the prior six-month period, the statement showed.

The prices will be applicable on a gross heat value basis.

Lower natural gas prices mean reduced costs for gas for fertilisers, automobiles and households. They will also cut earnings for state-owned Oil and Natural Gas Corp Ltd and Oil India Ltd.

(Reporting by Nidhi Verma; editing by Jason Neely)