Natural gas supplied to industrial activities saw a hike in prices up to 28%.
Who is affected🤷 Iron & steel factories, cement, fertilizers & petrochemicals will now pay $5.75 / MMBtu, instead of $4.5 / MMBtu, a 28% increase. Other industrial activities will pay $4.75 / MMBtu.
MMBtu = A million British Thermal Units – a standard unit of measurement for natural gas in financial contracts.
Why is this important🤔 The government reduced gas prices for industrial activities twice recently, the first in October 2019, & the second in March 2020 as part of a stimulus package to overcome the burdens of COVID-19. However, factories are constantly calling for a reduction in the price to be equal to global gas prices, which are less than $3 / MMBtu, to ease high production costs pressures on factories.