gas A government-appointed price review panel, led by Kirit Parikh, is recommending a floor and ceiling price for natural gas produced from legacy fields of state-owned firms for five years to help moderate CNG and piped cooking gas rates.
State producers Oil and Natural Gas Corporation (ONGC) and Oil India (OIL) will be paid a minimum or floor price of $4 per million British thermal unit and a cap or ceiling price of $6.5 as against the current rate of $8.57, three sources with direct knowledge of the matter said.
The report, which calls for not tinkering with the existing pricing formula for difficult fields such as KGD6 of Reliance Industries and bp is under finalisation, and may lower the ceiling price for ONGC gas marginally.
The floor and ceiling price will be applicable for five years although the initial thought was to keep it for three years, they said adding the ceiling price will have an annual escalation clause. The escalation being suggested is $0.5 per mmBtu annually with no change pricing for first two years or a $0.25 per mmBtu annual escalation for five years. The escalation will
This story is from the November 30, 2022 edition of Business Standard.
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This story is from the November 30, 2022 edition of Business Standard.
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