In its second price cut in a very short span of time, the government decided to cut the price of natural gas by 26%. Effectively, the price of a major portion of the natural gas has been cut from $3.23/mmbtu to $2.39/mmbtu. Even the price of gas from difficult to access deep sea fields has been cut from $8.43/mmbtu to $5.61/mmbtu. Incidentally, this is the lowest price since free pricing was permitted in 2014. Sharply lower gas prices will adversely impact the oil and gas extractors but will be positive for gas-fired users in the fertilizers and power sectors. This will also bring down the price of CNG substantially. In short, companies like ONGC and RIL will tend to lose out in the bargain while the likes of Adani Power will benefit.