ONGC to take Rs 7,000 cr hit over gas price; govt may alter pricing formula

Prices touched historic low of $1.79 per mmBtu for October-period of current financial year, down 25% from $2.39 per mmBtu during April-September period

State-run Oil and Natural Gas Corporation (ONGC) on Friday said its revenue would be hit by around Rs 7,000 crore because of low gas price of $1.79 per million metric British thermal unit (mmBtu).  

To tide over this crisis, the government is mulling options to revise the pricing formula and a committee is looking into it, ONGC Chairman and Managing Director Shashi Shankar said on Friday.

“Our average cost of production comes to $3.6-3.7 mmBtu. At current price, we are losing $2 per mmBtu, which will lead to an annual loss of around Rs 7,000 crore,” said Subhash Kumar, director finance of