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Gom on natural gas pricing to meet on July 8
New Delhi, June 29: The Group of Ministers (Gom) on natural gas pricing will meet on July 8 to deliberate on increasing gas prices by Rs 400 per thousand cubic metres to Rs 3250 per thousand cubic metres.
New Delhi, June 29: The Group of Ministers (Gom) on
natural gas pricing will meet on July 8 to deliberate on
increasing gas prices by Rs 400 per thousand cubic metres to
Rs 3250 per thousand cubic metres.
"Gom will discuss the recommendation of the Committee of
Secretaries to immediately hike the domestic natural gas
prices from Rs 2850 per thousand cubic metres to Rs 3250 per
thousand cubic metres", official sources said.
The COS, which was asked by the group of ministers to
look into deregulation of pricing of natural gas, also
recommended maintaining gas price at Rs 3250 per thousand
cubic metres for next two years while allowing oil and natural
gas corporation to sell gas from joint venture fields at
market rates.
However, the market based pricing would not apply on one
million standard cubic metres per day of gas produced from
Cairn Energy of UK operated Ravva field "as it will have a
severe impact on power consumers in Andhra Pradesh".
The COS , sources said, has favoured de-linking of gas
produced from JV fields like Panna-Mukta and Tapti on the west
coast, which is fed to HBJ pipeline system.
"For new fields and additional production of gas over and above the current level of production by ONGC and Oil India Ltd, the price will be de-linked from the administered price mechanism and would be market determined", it suggested.
Sources said the recommendations, if accepted by the Gom, would go to the cabinet for final approval.
Interestingly, at the COS deliberations, petroleum ministry wanted price to be raised to Rs 3850 per thousand cubic metres but ministries of power and fertiliser conceded an increase of only Rs 400.
Bureau Report
"For new fields and additional production of gas over and above the current level of production by ONGC and Oil India Ltd, the price will be de-linked from the administered price mechanism and would be market determined", it suggested.
Sources said the recommendations, if accepted by the Gom, would go to the cabinet for final approval.
Interestingly, at the COS deliberations, petroleum ministry wanted price to be raised to Rs 3850 per thousand cubic metres but ministries of power and fertiliser conceded an increase of only Rs 400.
Bureau Report