The Cabinet Committee on Economic Affairs (CCEA) approved the revised domestic natural gas pricing guidelines for gas produced from nomination fields of state-run ONGC and OIL, New Exploration Licensing Policy (NELP) blocks and pre-NELP blocks, where Production Sharing Contract (PSC) provides for government’s approval of prices.

• Gas produced from new wells or well interventions in the nomination fields of ONGC and OIL, would be allowed a premium of 20 per cent over the APM price, it added.
• Floor and ceiling price to go up by 25 cents per year after two years.
• The government on April 7 fixed natural gas price at $7.92 per MMBTU (million British thermal units) for the rest of April under the new pricing formula suggested by the Kirit Parekh Committee.
• However, the final rates for consumers have been capped at $6.5 per MMBTU.
• The Petroleum Planning and Analysis Cell (PPAC) of the oil ministry said in the order that the price of natural gas for April 8 to April 30 would be $7.92 per million British thermal units.
• This price has been fixed on the basis of 10 per cent of the average cost of imported crude oil.