Decision on gas pricing next week

Oil Min To Discuss Kerosene Cooking Gas Pricing Issues with PM next week

The Narendra Modi-led government will take a final decision on the controversial issue of a gas price rise for all domestic natural gas companies, including the Mukesh Ambani-led Reliance Industries.

The prime minister will be briefed by Petroleum Secretary Saurabh Chandra next week. The presentation will include steps to increase domestic oil & gas production, restructuring of production-sharing contracts, modalities of the revenue-sharing format for the next round of block auctions, and clarity on pricing of kerosene and cooking gas.

In a letter to RIL on April 21, then petroleum minister M Veerappa Moily had said, “According to notified guidelines, the earliest possible date for applying the new price is July 1.” However, the next day, he said the move would be effective retrospectively, from April 1.

An official told Business Standard this issue would top the list in Chandra’s presentation.

The new price for domestic natural gas was calculated at $8.2-8.4 per million British thermal units, based on a formula suggested by a panel headed by C Rangarajan. Implimentation was postponed due to the general elections. “Clarity on the international weightage prices that we are taking, according to the formula, will be available by mid-June and the pricing might be applicable from July 1,” said an official.