The Union Cabinet approved amended domestic gas pricing guidelines on Wednesday, and the price of natural gas will be 10% of the monthly average of the Indian crude basket.
Anurag Thakur, Minister of Information and Broadcasting, said at a press conference following a union cabinet meeting that there will be monthly notifications to ensure stable pricing in the regime and enough protection for producers from adverse market fluctuations. According to him, the rules will maintain a stable pricing system for domestic gas customers, enough protection for producers from adverse market fluctuations, and incentives for increased production.
The criteria will apply to gas generated from ONGC/OIL nomination fields, new exploration licence policy blocks (NELP), and pre-NELP blocks. The new rules will go into effect on Saturday.
