Reliance Industries Ltd.

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).