In , the Rangarajan committee came up with a formula to raise prices. Latest News Economy News. Arvind Kejriwal has expressed serious concern over the price hike in gas
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Free gas pricing: Rangarajan committee - Livemint
However, it is recommended that Government review the situation has five years to examine the feasibility of introduction of gas-on-gas competition. Leave a Reply Cancel reply Enter your comment here Domestic gas prices are easy based on the local demands, while gas imports can be decided based on the LNG costs and shipping, as well as competition among other countries.
The rangarauan now needs to take call on the choice between political expediency and continuing with energy deficit or strict implementation efficiency measures.
So it is hard to determine value 1 objectively. CAG should not reveal details of audit to public not even in Parliament because that leads to bad publicity for our company. Review of recommendations related to Natural Gas Price: Further development of gas fields shall stop and the new bidding rounds will go abegging peicing already seen in the last couple of NELP rounds.
For the same reason, all contracts are designated in dollars, and the gas and oil prices need to be worked out in this currency only.
More important, all services and goods used in oil industry move with these prices and are quoted in dollars.
The report further stated that the proposed formula would only apply prospectively and would not be applicable to cases where gas prices have already been approved. April 1,is when gas price from Reliance Industries-operated D6 block is to get a new price. Why is a review of the pgicing unwarranted at this juncture A meaningful rangaraajan has to consider many complex factors.
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Regulation relevant to all is needed. Committee price was mandated for first five years of production and is due to expire on March 31, However, sellers considered the Rangarajan formula price as a low one that did not reflect the true market price. The suggested formula will apply to pricing decisions made in future, and can be reviewed after five years when the possibility of pricing based on direct gas-on-gas competition may be assessed.
Thus, a few years ago, when oil prices suddenly shot up, the cost of drilling a rpicing almost doubled, whether it was in Gulf of Mexico or the KG basin. FinMin digs in, wants Repot surplus norms defined. Rs 65, cr set aside for Mumbai suburban rail revamp: While there is much debate on natural gas pricing and an appropriate formula to arrive at it, the need of the hour is to quickly fill up the void that exists today in the production sharing contracts under which private- and public-sector oil companies produce gas.
We have suggested four rangaraajn steps and it will ranbarajan into speedy implementation of projects and more bids. Fill in your details below or click an icon to log in: Further, the committee has recommended extending the timeframe for exploration in future PSCs for frontier, deep-water offshore, at more than metre depth and ultra-deep-water offshore, at more than 1, metre depth blocks from eight years currently to 10 years.
The bids will have to be progressive with respect to both volume of production and price level to ensure that as in contractor earns more, the government gets progressively higher revenue.
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Government should allocate block to a company that offers maximum share from profit. Natural gas pricing in India is diverse and complex in nature. These repogt contractual issues with producers; demand-supply balance, artificially controlled by the government at the moment; the budget deficit, because any replacement price impacts areas like agriculture and power where the government has social obligations and subsidies that are linked to the budget.
It is available for sale at near-zero price if you bear the expenses to evacuate and transport it. Nandana James reports on its business and health The Oil Ministry has withdrawn a note it had circulated to the members of a Gas markets can be stranded with expensive and complex transport issues. The PSCs work in the following fashion.