In a bid to protect the consumers from the global gas shocks and ensure fair prices for both buyers and producers, the government is planning to rework on the natural gas pricing policy. Discussions will soon be underway to find ways to keep domestic natural gas prices stable and affordable for consumers and at the same time offering decent returns to producers. A committee will be formed for the same. Producers and consumers such as fertiliser, power and city gas companies to nominate representatives to the committee.
The committee’s recommendations are expected to help frame a new policy to replace the gas guidelines of 2014. Under the 2014 guidelines, volume-weighted average prices of gas in the United States, Canada, Europe and Russia are used to determine domestic prices every six months.

With the oil prices in the international market have been sky rocketing for approximately a year now. This has driven the prices in India to $6.1 per mmBtu. It is expected that in the October revision the prices will increase again to reach $10 per mmBtu.  A sharp economic recovery from the Covid-led slump and the Russian supply curbs following the invasion of Ukraine have driven up gas prices to record-high levels.