The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that the selling price of domestically produced natural gas is determined as per the New Domestic Gas Price Guidelines 2014 issued vide notification dated 25.10.2014. The gas prices presently are USD 2.50 /MMBTU on Gross Calorific Value (GCV) basis for the period 01.10.2016 to 31.03.2017. The production costs of companies vary from field to field depending upon the area, logistics, complexity, onland or offshore etc. ONGC and OIL have not incurred any losses. They have posted profits in their accounts for last several years. Profit after Tax of OIL and ONGC are Rs. 2330.11 Crore and Rs. 16003.6 Crore respectively for 2015-16.
The present pricing mechanism is formula based and has been worked out considering the volumes and prices prevailing at major international markets such as Henry Hub, National Balancing Point, Alberta and Russia. The formula has been finalized considering the requirements of producing and consuming sectors. The Government has provided marketing and pricing freedom with a cap on gas production from difficult areas. In respect of natural gas production, the operating cost for ONGC and OIL for 2015-16 (including statutory levies) is US$ 2.02/mmbtu and US$ 1.53/mmbtu respectively.
Royalty and other statutory levies applicable to Exploration and Production companies including ONGC and OIL are as per the rates specified by the notifications issued by Union Government from time to time.
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