Coal India Limited announced an average 5% increase in thermal coal prices on 8 January 2018 to protect its falling margins. Prices have increased for 3,100-5,800 kcal/kg coal which constituted more than 82% of Coal India's production in 2017. This would provide short-term support to Coal India's profitability. However, it needs to improve productivity and find efficient ways to increase production from underground mines to sustain profitability in the long run. Also, this price increase will reduce the gap between the domestic coal and Indonesian low energy coal delivered to distant end users in India.