Gas price review call
The domestic gas pricing formula has come under question after the prices were cut by a steep 26 per cent to $2.39 per mBtu for a period of six months beginning April 1.
Oil industry sources said the cut in prices has brought out the gaps in the formula which does not consider the concerns of domestic producers and their operational viability.
Gas producers have written to the oil ministry offering various suggestions, including a review of the formula that puts domestic producers at a disadvantage over imported LNG.
The price for gas produced from domestic fields has been revised to $2.39 per mBtu from $3.23 per mBtu, resulting in a 26 per cent decrease. The ceiling price for gas to be produced from the difficult fields has also fallen to $5.61 per mBtu from $8.43 per mBtu, resulting in a 33.5 per cent decrease.
