Union Minister Anurag Thakur said that the Union Cabinet on Thursday approved the new gas pricing formula and put a cap to keep the rates of CNG, piped cooking gas under control.
The cabinet approved the revised domestic gas pricing guidelines. The natural gas price will be 10 per cent of the monthly average of the Indian crude basket, which will be notified monthly.
Union minister Anurag said, “Now instead of international hub gas price, the gas price is linked to imported crude oil. And the domestic gas price will be 10% of the international price of the Indian crude basket, which will be notified monthly.” ” Thakur.
This step has been taken to ensure stable pricing in the regime and to provide adequate protection to the producers from adverse market movements.
Anurag Thakur said the cabinet has approved a minimum price of $4/MMBtu for APM gas, a ceiling of $6.5/MMBtu against the current rate of $8.57.
Anurag Thakur told reporters after the cabinet meeting that natural gas produced from legacy or old fields, known as APM gas, would now be sold to crude oil based on gas prices in surplus countries like the US, Canada and Russia. will be indexed for the value of
From April 1, the price of APM gas will be 10 per cent of the price of the crude oil basket (Indian basket of crude oil) imported by India. However, such a rate would be capped at US$6.5 per million British thermal unit as against the current gas price of US$8.57 per mmBtu.
Such price will also have a ceiling of USD 4 per MMBtu.
He said the rates would be fixed every month instead of the current practice of bi-annual revision.
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