India Doubles Domestic Gas Price

India’s Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Manmohan Singh has approved Oil Ministry's proposal to hike price of all domestically produced natural gas to $8.4/mmBtu from $4.2/mmBtu.

The new price regime will come into effect from fiscal starting April 1, 2014 and will valid for five years, Press Trust of India said. Also, the price would be reviewed every quarter.

The new price, as per the Rangarajan formula, will apply uniformly to all producers, be it state-owned firms like Oil and Natural Gas Corp (ONGC) or private sector companies like Reliance Industries, PTI said.  

The Rangarajan formula uses long-term and spot liquid gas (LNG) import contracts as well as international trading benchmarks to arrive at a competitive price for India.