Govt to hike APM gas price in a month

Subscribe to Oneindia News

New Delhi, Sept 26 (UNI) The government today said it will raise the price of government-regulated natural gas from assets awarded to state-owned PSUs in a month, before launching next round of New Exploration Licencing Policy (NELP).

''We are ready with a cabinet note and the decision will be taken in a month to increase the price of APM (Administered Price Mechanism) gas,'' Petroleum Secretary M S Srinivisan told reporters here.

State-owned Oil and Natural Gas Corporation (ONGC) is likely to get a price of Rs 3.6 per cubic meter while Oil India Ltd will get a price of Rs 4 per cubic meter, he added.

The Tariff Commission had in May this year recommended a base minimum producer price of Rs 3.6 per cubic meter (2.21 dollars per million British thermal unit).

The current price of APM gas is Rs 3.2 per cubic meter (1.97 dollars per mBtu) excluding royalty.

Earlier, ONGC had sought a 40 per cent increase in the price of government-regulated natural gas to justify the investment it is making.

ONGC and OIL together produce about 55 million standard cubic metres a day (mmscmd) of gas from nominated fields. Of this ONGC produces around 47 mmscmd.

''Prices will be higher for Oil India because more gas is produced from deeper, on-shore areas which require more investment,'' Mr Srinivasan said.

UNI

Please Wait while comments are loading...