The Union Cabinet on Thursday gave nod to new gas pricing formula and imposed a cap to keep rates of CNG, piped cooking gas under examine, Union Minister Anurag Thakur knowledgeable.
The Cabinet permitted revised home gas pricing tips. The value of pure gas shall be 10 per cent of the month-to-month common of Indian Crude Basket, to be notified month-to-month.
“Now, gas price, instead of international hub gas price, has been linked to imported crude. And price of domestic gas will be 10% of international price of Indian crude basket, to be notified monthly…,” stated Union Minister Anurag Thakur.
This transfer has been made to guarantee secure pricing within the regime and supply enough safety to producers from adversarial market fluctuation.
The Cabinet permitted flooring of $ 4/MMBtu value for APM gas, ceiling of $6.5/MMBtu as in opposition to present price of $8.57, Anurag Thakur stated.
Natural gas produced from legacy or outdated fields, generally known as APM gas, will now be listed to crude oil value as a substitute of pricing it primarily based gas costs in surplus nations such because the US, Canada and Russia, Anurag Thakur informed reporters after a Cabinet assembly.
From April 1, APM gas shall be priced at 10 per cent of the value of basket of crude oil that India imports (Indian basket of crude oil). The price such arrived at nevertheless shall be capped at USD 6.5 per million British thermal unit as in opposition to present gas value of USD 8.57 per mmBtu.
The value such arrived at may also have a flooring of USD 4 per mmBtu.
Rates shall be determined each month as a substitute of present apply of bi-annual revision, he stated.
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