Price of domestic natural gas under new formula revised for May
May 01, 2023
New Delhi [India], May 1 : The price of domestic natural gas price has been set at USD 8.27 per mmBtu for the month of May, as against USD 7.92 in April, as per a notification from Petroleum Planning and Analysis Cell (PPAC).
PPAC under the Ministry of Petroleum and Natural Gas has, however, kept unchanged the price for gas produced by ONGC and OIL at USD 6.5 per mmBtu.
The Union cabinet approved the revised domestic natural gas pricing guidelines in early April. The price of such natural gas shall be 10 per cent of the monthly average of Indian Crude Basket and shall be notified on a monthly basis.
Further, gas produced from new wells or well interventions in the nomination fields of ONGC and OIL would be allowed a premium of 20 per cent over the Administered Price Mechanism price.
The new guidelines are intended to ensure a stable pricing regime for domestic gas consumers while at the same time providing adequate protection to producers from adverse market fluctuation.
The government has targeted to increase the share of natural gas in India's primary energy mix from 6.5 per cent to 15 per cent by 2030.
