The government has set up a panel to review the formula that dictates the pricing of gas produced by companies like ONGC and Reliance.
Key points
- The committee under former planning commission member Kirit S Parikh will suggest a fair price to the end consumer.
- The panel will include representatives of the gas producers association as also producers ONGC and OIL.
- The government had in 2014 used prices in gas surplus countries to arrive at a formula for locally produced gas. The rates according to this formula were subdued and at times lower than the cost of production till March 2022 but rose sharply thereafter, reflecting the surge in global rates in the aftermath of Russia’s invasion of Ukraine.
