Union oil ministry is in favour of revising the price of natural gas on a quarterly basis as against the monthly revision suggested by the Rangarajan Committee.
The ministry feels that the government may have to rely on limited sources for computation of the price if it is notified every month. This is because the ministry has to accommodate and reconcile price data from multiple sources.
According to the ministry, the availability of gas pricing data from all sources, such as Indian importers and other industry sources, including international agencies, varies from a few days to a month.
This may challenge the revision of price on a monthly basis, the ministry has reportedly argued. Further,the ministry has thought of notifying gas price only quarterly. This is also expected to dampen the volatility in prices.
The oil ministry is holding final discussion with the other ministries concerned, such as power and fertiliser, before approaching the Cabinet Committee on Economic Affairs for review of gas pricing.
Further, the ministry suggested that the ‘Natural Gas Pricing Guidelines’ be made applicable to all natural gas produced domestically, irrespective of the source.
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