Gas Pricing

Revised gas pricing formula to aid demand, profit stability for producers: Fitch

”We expect a partial pass-through of the lower administered price mechanism (APM) gas prices, at which domestic upstream producers supply gas to city gas distributors, in the prices of compressed natural gas (CNG) and domestic piped natural gas (PNG) to add to the distributors’ margins in the near term,” it said in a statement.

New pricing mechanism may bring immediate cost benefits to CGD firms

They may, however, lose the lower price advantage of a cheaper Henry Hub gas in the medium term, said analysts. Between October 2015 and March 2023, APM gas prices was higher than the new price ceiling of $6.5 just once and was above the floor of $4 on four occasions out of 17 price fixations.

ONGC, Oil India stand to gain from new gas price mechanism: Analysts

The formula for the new gas pricing mechanism will include a floor and ceiling at $4 and $6.5 respectively. The ceiling will be kept in force for the next two years.

MC Explains | All you need to know about your next gas bill

As per the new government guidelines for fixing domestic natural gas prices, your bills may go down by up to 10 percent in the immediate term. But how long will it stay there?

Gas sector: What do we like the most about it?

With the global milieu remaining volatile, the much-anticipated Kirit Parikh (KP) committee report on domestic gas pricing provides a ray of hope.

City gas distributors to gain most from Kirit Parikh panel pricing recommendations

Brokerages said if the suggestions are approved, they will have a positive impact on city gas distribution companies such as Indraprastha Gas and Mahanagar Gas.

ONGC aims to arrest decline in production, scale up output to 63.11 MMTOE by FY25

ONGC said that it will continue to invest around Rs 30,000 crore per year on capital expenditure aimed at arresting the decline in output and subsequently increasing it.

Book Excerpt: The Next Stop | How is natural gas pricing done in India?

A new book edited by energy expert Vikram Singh Mehta looks at different aspects of natural gas use in India, including policy changes and reforms in pricing.

Natural gas price far below average production cost: Icra

Following the implementation of modified gas pricing, the rate of domestic gas reduced to USD 2.48 per million British thermal unit for first half of 2017-18 (April-September), less than half of USD 5.05 when the formula was first applied in November 2014.

Will fix formula for premium on gas pricing soon: Pradhan

The Modi government's Make in India policy will take manufacturing to new heights and there will be a huge requirement of energy, Pradhan said, adding that as per the estimates in the next 15 years there will be huge demand for petroleum products.

IGL surges 16%, SC rejects PNGRB's plea in gas pricing case

Earlier in April 2012, the dispute begun when PNRGB had directed IGL to cut its retail prices. Delhi High Court backed the company, saying there were no statutory provisions that allowed PNRGB to fix retail gas prices.

RIL AGM: Pros see increased competition in media, telecom

Prayesh Jain of IIFL says the chairman's vision is like magnum opus but one will have to wait and see how it pans outs. "We will have to wait for the numbers to start trickling in. It will take atleast another year for the numbers to come in, only then will more clarity emerge on the valuation front," he adds.

Govt can now abolish subsidies amid crude fall: Ex-CMD ONGC

According to Sudhir Vasudeva, Former CMD, ONGC, investors need clarity on gas pricing and subsidy formula, as new gas price revisions have fallen short of expectations.

Gas pricing, subsidy sharing key triggers for ONGC: IDFC

Upstream oil companies such as ONGC, Oil India and GAIL are likely to benefit the most from lower subsidy payout, Prakash Joshi, metals analyst at IDFC says.

PM Modi meets NDA MPs, tells them to think above politics

The focus of the meeting was on the upcoming winter session of Parliament. The ministers gave presentations on different government schemes including Jan Dhan Yojana and Swachh Bharat Abhiyan.

Is more upside left in ONGC post gas price hike?

ONGC is unlikely to go beyond Rs 435-440 level, market expert Ambareesh Baliga said.

Expect Reliance to report flattish Q-o-Q growth: Religare

Nitin Tiwari, VP- Institutional Research, Religare Capital Markets expects Reliance petrochemical margins to be better on a sequential basis. However, RIL may post weak earnings on the back of frail US refining margins, he adds.

Doing biz: India aims high but CEOs lament current state

The Economist India Summit was marked by attendants and speakers expressing confidence in the prospects of the Indian economy while some executives lamented the current state of affairs when it came to doing business.

Gas pricing report on Sep 10; Ranga formula may be junked

The four-member secretaries panel is expected to submit its report on the gas pricing issue by September 10. A final decision on the matter is expected by the end of this month.

Diesel deregulation a theoretical question now: DK Sarraf

DK Sarraf, CMD, ONGC feels deregulation of diesel is a theoretical question now, given that diesel under recovery stands at 8 paise a litre only. Some reforms are anticipated on the LPG front too.

Floor price need not be stipulated in gas pricing: Moily

Oil Ministerr Veerappa Moily says cap/Floor price need not be stipulated in gas pricing.

Govt allows Coal India to produce gas from coal seams

The Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Manmohan Singh, allowed Coal India (CIL), the world's largest coal miner, to explore and produce coal-bed methane (CBM) in its existing mines, Coal Minister Sriprakash Jaiswal said.