The Union Cabinet on Thursday approved a new formula for fixing the price of natural gas. Along with this, a ceiling has also been fixed on the prices of CNG and piped cooking gas.
Information and Broadcasting Minister Anurag Thakur gave this information after the cabinet meeting.
He informed that the cabinet has approved a base price of $4 per mmbtu for APM gas and has approved a ceiling price of $6.5 per mmbtu.
He pointed out that natural gas produced from conventional or old fields, known as APM gas, would now be linked to crude oil prices like surplus countries like the US, Canada and Russia. Earlier their pricing was done on the basis of gas prices
After this decision, from April 1, the price of APM gas will be 10 percent of the price of crude oil in the Indian basket. However, this price will not exceed $6.5 per million British thermal units (MMBtu). The current gas price is $8.57 per mmBtu.
He informed that the prices would be fixed every month, whereas till now they were reviewed twice a year.