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Kirit Parikh Committee
December 6 , 2022
712 days
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- The Kirit Parikh panel recently submitted a report on gas pricing.
- It was recommending complete pricing freedom from January 1, 2026.
- The committee recommended that India should have completely free and market-determined pricing of natural gas extracted from legacy fields.
- It is account for over 70 per cent of the total natural gas produced in India.
- The panel also recommended increasing the ceiling rate for the gas from legacy fields by 0.5 per mm BTU (Metric Million British Thermal Unit).
- It recommended market-determined pricing for gas produced from legacy fields by January 1, 2027.
- It did not recommend any changes in the existing pricing formula for fields in difficult geology like KG-D6 of Reliance Industries.
- Currently, fields in deep sea, high temperature, high-pressure zones are governed by a different formula that includes an element of imported LNG cost.
- However, they are also subject to a price ceiling of 12.46 USD.
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