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Centre notifies gas prices for new wells at 20 per cent premium versus 10% earlier
The Business Guardian
|August 13, 2024
Petroleum and natural gas ministry has notified the allocation of gas produced from new wells or well interventions from nominated fields of ONGC/OIL at 20 per cent premium over the APM price.
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APM is an Administrative Price Mechanism.
As per guidelines for domestic gas pricing, domestic natural gas price (APM price) was fixed at 10 per cent of the Indian Crude basket price as announced by Petroleum Planning and Analysis (PPAC) on a monthly basis.
It was provided in the guidelines that for the gas produced from new wells or well intervention in the nomination fields of ONGC/Oil India Limited, there would be a premium of 20 per cent over APM prices (total 12 per cent of Indian Crude basket price for new gas).
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