# Lower gas prices to benefit urea producers, reduce subsidy needs: Icra, ETEnergyworld

> ICRA says lower domestic gas prices will cut production costs for Indian urea producers and reduce subsidy needs. The government-mandated domestic gas price for October 2020 to March 2021 fell to $1.79/mmbtu, the lowest since the Rangarajan formula was introduced, while phosphoric acid prices are rising.

- Date: 2020-10-06 · published 2020-10-06T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/50947-lower-gas-prices-to-benefit-urea-producers-reduce-subsidy-needs-icra
- Commodities: [Natural Gas](https://feedsoft.ai/c/NATGAS.md), [Urea](https://feedsoft.ai/c/UREA.md)

## Why it matters

Cheaper gas lowers the cost of urea production in India, which can ease pressure on global prices if domestic output rises. Higher phosphoric acid costs squeeze phosphatic fertilizer producers.

## Read by commodity

- UREA: neutral
- NATGAS: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| NATGAS | 2019-01-07 | [Moderation in gas prices will improve margins for urea players: ICRA \| ECHEMI](https://feedsoft.ai/events/61401-moderation-in-gas-prices-will-improve-margins-for-urea-players-icra-echemi.md) | +3.6% | -10.4% |
| NATGAS | 2019-07-02 | [Softening gas prices credit positive for urea sector: Report - The Economic Times](https://feedsoft.ai/events/58405-softening-gas-prices-credit-positive-for-urea-sector-report-the-economic-times.md) | +5.2% | -5.2% |
| NATGAS | 2019-09-29 | [To counter gas glut producers need to invest smartly and innovate to stay cheap \| The National](https://feedsoft.ai/events/57260-to-counter-gas-glut-producers-need-to-invest-smartly-and-innovate-to-stay-cheap.md) | -4.4% | -5.3% |
| NATGAS | 2017-03-06 | [Moody's: Oversupply to keep LNG prices low beyond 2020 \| Oil & Gas Journal](https://feedsoft.ai/events/72168-moody-s-oversupply-to-keep-lng-prices-low-beyond-2020-oil-and-gas-journal.md) | +12.6% | +18.9% |
| NATGAS | 2023-03-24 | [US natgas prices slump after mild winter leaves big surplus \| Reuters](https://feedsoft.ai/events/37027-us-natgas-prices-slump-after-mild-winter-leaves-big-surplus-reuters.md) | -4.3% | +4.7% |
| UREA | 2020-06-25 | [Global gas prices teeter above record lows on virus optimism, weather – The Energy Bulletin Daily](https://feedsoft.ai/events/9803-global-gas-prices-teeter-above-record-lows-on-virus-optimism-weather-the-energy.md) | +3.4% | +7.3% |
| UREA | 2023-02-16 | [Softening fertilizer prices "a bit of a gift" - Brownfield Ag News](https://feedsoft.ai/events/37644-softening-fertilizer-prices-a-bit-of-a-gift-brownfield-ag-news.md) | +0.1% | -3.1% |
| UREA | 2025-02-19 | [LNG markets poised for rollercoaster year ahead - Rystad Energy’s Gas and LNG Special Market Update \| Air Freight News](https://feedsoft.ai/events/26217-lng-markets-poised-for-rollercoaster-year-ahead-rystad-energy-s-gas-and-lng.md) | -0.6% | -4.7% |

## Sources

- energy.economictimes.indiatimes.com: https://energy.economictimes.indiatimes.com/news/oil-and-gas/lower-gas-prices-to-benefit-urea-producers-reduce-subsidy-needs-icra/78505197

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.