India Likely to Announce New Price Regime by July

India is likely to announce a hike in natural gas price in July after the proposal is approved by the Cabinet, reports Press Trust of India.

The new price regime was supposed to come into effect from April 1 but was deferred due to elections.

"It (gas price revision) is an issue which needs attention. Decision needs to be taken before July 1," a government source told Press Trust.

As per the guidelines of the Rangarajan formula, domestic gas prices will double from the present price of $ 4.2 mbtu. The decision to hike domestically produced gas was taken early last year.

Rangarajan panel had suggested pricing of all domestically produced natural gas at an 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 price for each quarter will be calculated based on the 12-month trailing average price with a lag of one quarter, says Press Trust.

 India