In order to review the formula that dictates the pricing of gas produced by companies like Oil and Natural Gas Corporation (ONGC) and Reliance, the government has set up a panel. The idea is to moderate the steep increase that producers would have otherwise got. The committee will suggest a fair price to the end consumer. The panel will include representatives of the gas producers association and producers ONGC and Oil India Limited. It has been directed to submit its report by September 2022 end. The committee will also have a member from private city gas operators, state gas utility GAIL, a representative of Indian Oil Corporation and a member from the fertiliser ministry.
The prices that are payable to producers like Reliance Industries and state-owned ONGC are due for revision on October 1,2022. The price of gas from old fields was more than doubled to USD 6.1 per mmBtu from April 1,2022. It is expected that these prices will witness another increase and cross USD 9 in October 2022.