Union cabinet approves revised domestic gas pricing formula, to benefit consumers

The Union Cabinet on April 6 approved revised domestic gas pricing guidelines.

As per the new guidelines, the price of natural gas is to be 10 per cent of the monthly average of Indian Crude Basket which is to be notified monthly.

Further, this move will ensure stable pricing in the regime and provide adequate protection to producers from adverse market fluctuation.

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The guidelines are applicable to gas produced from:

Nomination fields of ONGC/OIL, New Exploration Licensing Policy (NELP) blocks and Pre-NELP blocks which will help to ensure a stable pricing regime for domestic gas consumers, provide adequate protection to producers from adverse market fluctuation and provide incentives for enhancing production.