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Gas Rates: In order to bring down the prices of CNG and LPG coming from the pipeline, such arrangements are being made, which will be able to control the inflation of rising prices. A price cap can be imposed for five years on natural gas coming out of old fields by public sector companies. The gas price review committee appointed by the government under the leadership of Kirit Parekh has recommended this.
ONGC, OIL fix gas prices – sources
Public sector companies Oil and Natural Gas Corporation (ONGC) and Oil India Limited (OIL) have now been paid a minimum price of $4 per million British Thermal Unit (per unit) and a maximum of $6.5 as against the current rate of $8.57. Will go. Three sources related to the matter gave this information. The committee, headed by former Planning Commission member Kirit S Parekh, is finalizing its report and will submit it to the government in the next few days. After reviewing these recommendations, the Petroleum Ministry will send it for cabinet approval.
Gas prices will neither come down much nor go up much – sources
The Parekh Committee was tasked with making suggestions to ensure “a market-oriented, transparent and reliable pricing regime to promote a gas-based economy in India”. The committee also had to decide that the end consumer gets gas at a reasonable price. He said that the minimum and controlled price will be for five years and it will be reviewed every year. This will ensure that prices do not fall below the cost of production, as happened last year. Or will not rise to record highs like the current rates.
City gas gets top priority in allocation of gas
Sources said that based on the recommendations of the committee, investment concerns in exploration and production (E&P) could also be addressed. He said that market-based pricing will encourage new investments and global companies will come here. Sources said that city gas will get top priority in the allocation of gas. The area will be in the ‘zero cut’ category, which means that in case of fall in generation, supply to other consumers will be cut first.
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No change in price for Reliance-BP – know the reason
However, the pricing formula for gas coming out of difficult fields will not be changed. This pricing arrangement applies to the KG-D6 field of Reliance Industries Ltd and its UK partner BP Plc’s difficult fields.
Based on inputs from the agency
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