Finance Ministry in its latest gas pricing formula has reportedly told Oil Ministry that Reliance Industry (RIL) must deliver outstanding gas at old rate of $4.2 and that upside needs to be capped as it cannot allow unlimited gains to the companies.
Recently, the government approved doubling of natural gas prices from the present $4.2 per million British thermal unit (mbtu) to $8.4 per mbtu from April 1, 2014. It is the first revision in gas prices in 3 years and is likely to result in escalation of power tariffs and fertilizer cost and will make CNG transportation more expensive.
