Govt likely to introduce new rules for natural gas pricing and distribution

India's energy sector is planning to come up with new rules for natural gas pricing and distribution in order to allocate the scarce resources and to revise the prices.

The oil ministry along with the planning commission has finalized the proposal on gas allocation for the EGoM, where Producers are concerned that the current price of gas is not adequate to justify investment of tens of thousands of crores in developing new fields in challenging terrain, while customers want supplies to rise sharply but they are demanding cheap fuel, said the media report.

Moreover, the panel of ministers will also take decision on the proposal of Reliance Industries and its partner BP to raise the price of natural gas produced from the KG-D6.

The EGoM will consider two separate proposals, one for raising prices of gas produced by blocks auctioned under new exploration licensing policy (Nelp) and the other for allocation of gas produced from other blocks, an official told media.

Read more about: natural gas, natural gas pricing
Story first published: Monday, May 6, 2013, 13:30 [IST]
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