Reliance Industries (RIL) is facing a 40% cut in the marketing margin it charges on selling its KG-D6 gas to fertiliser and LPG plants after the government notified a ceiling of Rs 200 per thousand standard cubic meters (scm).
The company was charging $0.135 per million British thermal unit (mmBtu) as margin to hedge marketing risks on sale of its eastern offshore KG-D6 gas. This is over and above the gas price of $4.24 per mmBtu.
Pursuant to the Cabinet decision of November 18, fixing a maximum marketing margin that firms can charge on selling all domestically produced natural gas to fertilizer and LPG plants, the Oil Ministry has issued a Gazette notification fixing the levy at a maximum of Rs 200 per thousand scm (on Net Calorific Value of 10,000 Kcal/scm).
| Company Name | CMP |
|---|---|
| Reliance Industries | 1327.85 |
| Indian Oil Corp. | 145.10 |
| BPCL | 311.80 |
| HPCL | 401.35 |
| MRPL | 165.45 |
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