Govt plans floor price for domestic natural gas amid falling prices, demand

Relief for producers as prices and demand falling globally

In what may bring relief to domestic natural gas producers, the Union government is considering setting a floor price for their output. The plan will benefit Oil and Natural Gas Corporation (ONGC), which contributes nearly 80 per cent of natural gas production in India, the most, besides Oil India (OIL), Vedanta’s Cairn Oil and Gas, and Hindustan Oil Exploration Company (HOEC). 

The government has set up a committee comprising representatives from the Petroleum Planning and Analysis Cell (PPAC), ONGC, OIL, and GAIL. An official confirmed that the setting of a floor price was under consideration, and that the proposal would need