The Prime Minister appointed Rangarajan Committee has suggested mandating a price of domestically produced natural gas at an average of international hub prices and cost of imported LNG instead of present mechanism of market discovery.
The Panel suggested first taking an average of the US, Europe and Japanese hub or market price and then averaging it out with the netback price of imported Liquified Natural Gas(LNG) to give the sale price of domestically produced gas.
The suggested formula will apply to pricing decisions made in future, and can be reviewed after five years.
Courtesy: THE HINDU
The Panel suggested first taking an average of the US, Europe and Japanese hub or market price and then averaging it out with the netback price of imported Liquified Natural Gas(LNG) to give the sale price of domestically produced gas.
The suggested formula will apply to pricing decisions made in future, and can be reviewed after five years.
Courtesy: THE HINDU
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