Last Updated :
03 December 2009 at 15:35 IST
India plans to revise natural gas price
NEW DELHI (Commodity Online): India is planning to revise the price of gas produced by ONGC in order to bring down the losses caused by selling at subsidized rates.
Minister of State for Petroleum and Natural Gas, Jitin Prasada informed the Parliament that on the basis of recommendations made by Tariff Commission pertaining revising prices, the government is considering the proposals to revise rates.
The Minister said, ONGC is selling 97% of its gas at $2 per unit which is equivalent to just $12 per barrel of crude whereas the prevailing price is about $80.
Due to this huge difference, the two PSUs — ONGC and Oil India Ltd — were incurring losses, the Minister said adding that in 2006 ONGC’s losses were over Rs 2,500 crore.
He said since natural gas is a cheaper fuel compared to coal or naphtha for generating electricity, its demand is high.
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