Published on October 21, 2014
The Union Cabinet has approved the new gas pricing formula, which will push up domestic natural gas price from $4.2 per million British thermal units (mmBtu) to $5.61 per mmBtu.
The Rangarajan panel formula suggested that the gas price should be raised to $8.4 per mmBtu. The new gas pricing formula will be effective from 1 November and the rates will be changed every six months with the next revision scheduled on 1 April, 2015.
This new pricing formula will be applicable for fields given to ONGC and OIL on nomination, NELP and pre-NELP blocks and coal bed methane blocks. Nevertheless, for Reliance Industries’ KGD 6 block will continue at the current price of $4.2 per mmBtu.
