Oil Ministry adopts proposal for pricing natural gas at 10% of crude oil cost.

Date - 30/01/2023 The oil ministry has approved the main suggestions of the Kirit Parikh committee regarding the pricing of domestic natural gas and has started discussions with other departments before submitting a proposal to the Cabinet. The oil ministry's proposal, based on the committee's recommendations, involves setting the price of domestic natural gas at 10% of the crude oil price, with a minimum of $4 and a maximum of $6.5 per MMBtu, as per sources familiar with the situation. Currently, domestic gas, which follows the administered price mechanism (APM), is priced based on the average prices at international gas centers. The oil ministry is seeking input from the Niti Aayog and the finance, fertilizer, steel, and power ministries regarding the proposal. After taking into account the suggestions from the Aayog and other departments, a final proposal will be promptly prepared and submitted to the Cabinet, according to a source. The longest downward trend since the end of September has seen natural gas prices fall for six consecutive weeks. The commodity has fallen 36.3% in January, which is the steepest decline since December 2018. This is the worst performance over a two-month period since 2008, as a result of the anticipated mild weather and rising US inventories. Note – Every photo is symbolic (Photo Source: Google) All news and stories given on this website are reported by the reporter or taken from some source. Our endeavor is and will continue to provide you with the best information. The responsibility of this news and other things will be with the author (reporter) and the source