Kirit Parikh panel suggests floor and ceiling price for gas from India fields

The Kirit Parikh committee has really helpful a flooring and ceiling price for the fuel produced from India’s old fields.

In its report submitted to the federal government on Wednesday, the committee additionally instructed free pricing beginning January 2027 for fuel produced from these legacy fields and from January 2026 for troublesome fields.

Gasoline produced from the legacy fields of Oil & Pure Gasoline Corp and Oil India will realise a minimal of $4 per million British thermal models and have a cap, or higher ceiling worth, of $6.50, in opposition to the present price of $8.57, as per the suggestions.

Legacy fields account for two-thirds of all-natural fuel produced domestically.
The panel instructed linking the value of fuel produced by state-owned corporations to imported crude oil costs as an alternative of benchmarking them to fuel charges in worldwide hubs – Henry Hub (US & Mexico), Alberta (Canada), Nationwide Balancing Level (European Union) and the Russian pure fuel.

The ceiling price for fuel from legacy fields could be raised $0.50 per mmBtu yearly, the committee really helpful. It, nevertheless, didn’t tinker with the prevailing pricing method for high-pressure high-temperature (HPHT) fields or deep-sea fields like KG-D6 owned and operated by Reliance Industries and BP plc.

At present, the pricing method for HPHT fields consists of a component of imported LNG price. This, nevertheless, is topic to a cap or ceiling, which is $12.46 at the moment. The committee instructed persevering with with the cap for 3 years and giving complete pricing freedom for deep-sea fuel from January 2026.