The prices of piped natural gas (PNG) used in domestic households and compressed natural gas (CNG) used for automobiles could fall if the government accepts the Kirit Parikh committee’s recommendation of a price band of $4-6.50 per mBtu for domestic gas.
The panel, which submitted its report to the oil ministry, has suggested an annual hike of 50 cents per mBtu. It also favoured complete pricing freedom for domestic gas producers by January 1, 2027.
State-owned exploration firms ONGC and Oil India mainly produce gas from the old fields accounting for about 80 per cent of the country’s annual output of about 91 billion cubic metres.
