Gas Pricing System
New pricing norms cut earnings downside for gas producers: S&P Ratings
India's new gas pricing regime will offer greater downside protection for earnings of gas companies such as Oil and Natural Gas Corp (ONGC) and Oil India Ltd, S&P Ratings said on Friday. The new norms will not affect the pricing for gas produced from difficult fields that companies like Reliance Industries Ltd operate. Under the new guidelines announced on April 6, 2023, the government will set prices for domestically produced gas on a monthly basis; the rate will be 10 per cent of the average price of the Indian crude basket in the preceding month. The price will have a floor of USD 4 per million British thermal unit (mmbtu) and a ceiling of USD 6.5 per mmBtu. "We expect the new gas pricing terms to result in more fluid market price revisions," said S&P Global Ratings credit analyst Shruti Zatakia. Under the earlier regime, prices were reset semi-annually and were linked to gas prices in key international trading hubs. The pricing mechanism for gas production from deep water,
 "New pricing norms cut earnings downside for gas producers: S&P Ratings")
IGL, MGL gain up to 4% post Kirit Parikh panel gas pricing recommendations
The S&P BSE Oil & Gas index hit a 52-week high of 20,653.57 in intra-day trade on Wednesday
 "IGL, MGL gain up to 4% post Kirit Parikh panel gas pricing recommendations")
Deflating gas economy: Kirit Parikh has a tough task on hand as prices soar
As global prices soar, another committee to review gas pricing policies may find the going more challenging
 "Deflating gas economy: Kirit Parikh has a tough task on hand as prices soar")
India fast tracks gas exchange proposal
IEA also expects demand for natural gas in India on an average of 6 per cent per year to around 80 billion cubic meter by 2022
 "India fast tracks gas exchange proposal")
