NEW DELHI: The government-appointed gas price review panel headed by Kirit Parikh has recommended a floor price of $4 per mmBtu (Metric Million British Thermal Unit) and a cap of $6.5 per mmBtu for legacy and old fields being operated by ONGC and OIL.
A report submitted by the panel suggested linking the price of gas produced by state-owned firms from fields given to them on a nomination basis to imported crude oil prices rather than benchmarking them to gas rates in international markets, adding that the rates thus arrived would be subject to a floor and ceiling. It suggested the ceiling rate for this gas from legacy or old fields, called APM gas, will be increased by $0.5 per mmBtu annually.