(PTI)
The oil ministry has accepted the key recommendations of the Kirit Parikh committee on domestic natural gas pricing and begun consultations with other ministries before it sends a proposal to the Cabinet.
The oil ministry’s proposal, based on the panel’s recommendations, includes pricing domestic natural gas at 10% of the crude oil price, with a floor of $4 and ceiling of $6.5 per mmBtu, according to people familiar with the matter. At present, domestic gas, which follows the so-called administered price mechanism (APM), is priced in line with the average rates at international gas hubs.
The oil ministry is seeking the views of the Niti Aayog and the ministries of finance, fertiliser, steel and power on the proposal. A final proposal after incorporating the suggestions from the Aayog and other ministries will be prepared soon and presented to the Cabinet, one of the people said.
