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Decision on RIL gas pricing likely next week

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Rakteem Katakey New Delhi
Last Updated : Feb 05 2013 | 2:06 AM IST
The issue of pricing gas from Reliance Industries' (RIL) deep-water block in the Krishna-Godavari basin will "be resolved in the next meeting of the empowered group of ministers (EGoM) next week," a top government official closely linked with the ministerial group has said. The official said extensive discussions had taken place and the group, headed by External Affairs Minister Pranab Mukherjee, would in all probability take a decision next week.
 
The official, however, declined to say if the pricing formula devised by RIL was likely to be approved or there would be suggestions for "tweaking" the formula to reduce the price of $4.33 per million British thermal unit (mBtu) the company had reached at.
 
The EGoM, after it met for two consecutive days at the end of August, has been postponing its meetings.
 
An oil ministry official said RIL's formula was likely to be cleared with small changes. "RIL is likely to be asked to link the formula to either the rupee or the dollar. This will insulate the price from the volatility in the value of the rupee against the dollar," added the official. The present formula is linked to both rupee and dollar, which make it susceptible to exchange rate fluctuations.

 

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