Panel set up to examine gas pricing formula

Panel set up to examine gas pricing formula

Panel set up to examine gas pricing formula

The government on Friday formed a four-member panel of secretaries to “comprehensively” discuss the pricing formula for domestically produced natural gas that was approved by the former UPA regime.

The UPA had approved near doubling of gas prices from the current $4.2 per unit.

The committee includes Power Secretary P K Sinha, Fertiliser Secretary J K Mohapatra, Expenditure Secretary Ratan P Watal and Additional Secretary in the petroleum ministry Rajive Kumar.

The panel will re-examine the matter “comprehensively” and discuss the issues with all stakeholders, the official said.

The panel’s first meeting is scheduled for Monday and it is likely to submit its findings in two-three weeks, the official added.

Petroleum Secretary Saurabh Chandra had on Thursday said that the process of formulating a new mechanism for pricing of domestically produced gas would begin next week and a decision is likely to be taken by September 30.

After assuming control at the Centre, the NDA government had postponed the implementation of the new gas pricing formula that was to come into effect from June. It deferred the decision on gas pricing by three months.

The Cabinet Committee on Economic Affairs had said there was a need to re-examine the guidelines for pricing of domestic natural gas and a decision on the same would be taken at the end of September.