SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Finance Ministry asks Oil Ministry to consider putting a cap on increase in domestic gas price

11 Jul 2013 Evaluate

After raising natural gas prices to $8.4 per mbtu from April 1, 2014 which is twice the current rate, the Finance Ministry has written to Oil Ministry seeking an appropriate action and suggested for putting a cap to limit hike in gas rates. The gas prices can be raised as per the Cabinet Committee on Economic Affairs' (CCEA) approved formula of using imported LNG and international hub rates and thus to limit this hike the suggestion was given.

The letter, from the department of expenditure of the finance ministry said that there must be a ceiling price under the formula to cap the unlimited gains for gas producers in the case of an upswing in global prices. The finance ministry also said that it should examine whether it is possible to ensure that Reliance Industries (RIL) delivers its current supply shortfall at the old price of $4.2 per mBtu and does not get undue benefit of an increased price.

Last week, finance ministry also sent an office memorandum to the Oil Ministry enclosing two media reports regarding the June 27 decision of the CCEA to double rates to $8.4 from April 1, 2014, asking it to examine the issues raised for appropriate action. The CCEA has approved Rangarajan panel formula for pricing of gas and would be applicable for next five years. The natural gas prices will be revised on the quarterly basis and for the April-June quarter of 2014, it comes to $8.4 per mbtu. The new price will be uniformly applicable to all public and private sector producers alike. The increase in gas prices will directly benefit these local producers.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×