The
Finance Ministry has rejected the natural gas pricing formula suggested
by the Rangarajan Committee and has instead suggested an alternative
formula based on wellhead prices charged by suppliers in the region
(Oman, Qatar, Abu Dhabi and Malaysia) for long-term contracts.
Prices calculated by finance ministry as per the alternative formula may be lower than the Rangarajan Committee figure. Wellhead prices do not take into account transportation costs — a significant price escalator in the case of Liquified Natural Gas. The ministry has made this suggestion in a note for the consideration of the Empowered Group of Ministers (EGoM) while deciding the road map for gas pricing.
Prices calculated by finance ministry as per the alternative formula may be lower than the Rangarajan Committee figure. Wellhead prices do not take into account transportation costs — a significant price escalator in the case of Liquified Natural Gas. The ministry has made this suggestion in a note for the consideration of the Empowered Group of Ministers (EGoM) while deciding the road map for gas pricing.
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