Press Esc to close
Sunday 25 September 2016
News updated at 3:48 PM IST
Weather
Max: 25.8°C
Min : 19.6°C
In Bengaluru
Generally cloudy
Breaking News

'RIL to get more than $8.4 price for gas starting next fiscal'

Mumbai, July 6, 2013, DHNS:

Mukesh Ambani group's flagship company Reliance Industries (RIL) will get $8.4 price for the natural gas from its eastern offshore KG-D6 fields from April 1, 2014 and potentially higher rates in following quarters, its minority partner Niko Resources said.

Going by the Rangarajan committee pricing formula effective from April 1, 2014 for a period of five years, RIL is expected to get "about $8.40 per million British thermal unit for gas, double the price of $4.20 for current gas sales from the D6 Block," it said.

Niko also confirmed that the Cabinet Committee of Economic Affairs (CCEA) has approved a new pricing formula for domestic gas sales in India based on the Rangarajan panel recommendations.

"The pricing formula is based on the average of the prices of imported liquefied natural gas (LNG) into India and the weighted average of gas prices in North America, Europe and Japan," the Canadian firm said.

Under the approved price formula, starting next fiscal (2014-15) the price for each quarter will be calculated based on the 12-month trailing average price with a lag of one quarter. This effectively means that the gas price for April to June 2014 period will be based on the averages for 12 months-ended December 2013, it said.

Also, this gas price was indicated in the Annexure that the Oil Ministry attached to the main Cabinet note on pricing of domestic gas as per a formula suggested by the Rangarajan panel.


Go to Top

Photo Gallery
Army personnel arrive to help flood affected people in Hyderabad...

Army personnel arrive to help flood affected people in Hyderabad...

Prime Minister Narendra Modi with BJP President Amit Shah wave to the crowd at public rally...

Prime Minister Narendra Modi with BJP President Amit Shah wave to the crowd at public rally...

Thangavelu Mariyappan who won the gold in the Paralympics in Rio de Janeiro...

Thangavelu Mariyappan who won the gold in the Paralympics in Rio de Janeiro...

A view of regular traffic during relaxation given by authorities and separatists from strike...

A view of regular traffic during relaxation given by authorities and separatists from strike...

A truck hangs mid-air after breaking the railing of a road bridge over Manjira river in Medak...

A truck hangs mid-air after breaking the railing of a road bridge over Manjira river in Medak...

Cricketer M.S. Dhoni at the launch of refurbished edition of Maruti Suzuki's Alto 800...

Cricketer M.S. Dhoni at the launch of refurbished edition of Maruti Suzuki's Alto 800...

An artist takes selfie with other artists in Ahmedabad on Saturday...

An artist takes selfie with other artists in Ahmedabad on Saturday...

Indian Space Research Organisation's PSLV-C35 ready to be launch on Saturday with SCATSAT-1...

Indian Space Research Organisation's PSLV-C35 ready to be launch on Saturday with SCATSAT-1...

People participate in a protest by Maratha Karnti Morcha against Kopardi Rape case in Nashik...

People participate in a protest by Maratha Karnti Morcha against Kopardi Rape case in Nashik...

Soldier carrying weapon at a location near the Indo-Pak border in Jammu...

Soldier carrying weapon at a location near the Indo-Pak border in Jammu...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523