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Gas price for Apr at $7.92 but price for ONGC/OIL capped at $6.5: Govt order The Centre on April 7 announced that natural gas will be priced at $7.92 per million British thermal unit (mmBtu) for the period of April 8 to April 30. However, rates for customer are capped at $6.5/mmBtu. The revised rate is as per a new pricing formula wherein price is at 10 percent of imported cost of crude oil, as per the Oil Ministry’s Petroleum Planning and Analysis Cell. The new formula was suggested by the Kirit Parikh committee. The cap has also been set in the order issued. It states: "For the gas produced by ONGC/ OIL from their nomination fields, the price shall be subject to a ceiling of $6.5 per mmBtu.” The order Compressed natural gas (CNG) and piped natural gas (PNG) meet close to 70 percent of demand supply. The new formula will be applicable on natural gas produced from legacy or old fields, known as APM (administered price mechanism) gas. As per the formula this gas will now be indexed to the price of imported crude, instead of benchmarking it to gas prices in four surplus nations of Oman, […]
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