India Constitutes New Panel to Look Into Gas Pricing

Indian government has set up a panel to work out a new gas price formula, Times of India newspaper reported Saturday.

The committee will consist of power, fertilizer and expenditure secretaries, with an additional secretary in the petroleum ministry as the member secretary, the newspaper said. The final report is expected within two to three weeks.

The previous UPA government had approved pricing formula suggested by a panel headed by C Rangarajan. The new price regime was supposed to originally come into effect from April 1 but was deferred because of national elections in May.

The price of gas, according to this formula, comes to around $8.3 per million British thermal unit for April-June quarter, almost double the current price of $4.2.

Country’s oil minister recently said a decision regarding the gas price would be taken keeping in mind the interest of investors and public and a new formula would be announced by September 30.