India to cut gas prices from April 1 after review panel report: Sources
NEW DELHI (Reuters) – India’s cabinet is set to adopt a gas panel report this week, which has recommended capping the price for most local gas at $6.50 per million British thermal units (mmBtu) in April, two sources said on Monday.
India last year set up the panel, led by energy expert Kirit Parikh, to review India’s gas pricing formula to ensure fair prices to consumers after state-set prices of gas from old fields and a ceiling price for output from hard-to-access, difficult blocks rose to record highs.
The panel suggested that the monthly price of gas produced from old blocks be fixed at 10% of the monthly average of the Indian crude basket, with a cap of $6.5/mmBtu and a floor price of $4/mmBtu.
