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

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The company indicated that on capital expenditure front too, it is likely to go for a cut in its plans of investing Rs 32,500 crore for the current financial year, due to Covid situation.

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 ...