The Ministry of Petroleum and Natural Gas (MoPNG) has accepted Kirit Parikh’s recommendation on the natural gas pricing formula.

Besides, the ministry is likely to recommend the policy to cabinet soon.

The committee has recommended setting a floor price of $4 per mmbtu (million British thermal units) and ceiling price of $6.5 per mmbtu for gas produced from old legacy fields, with an option to increase the ceiling price by $ 0.5 per mmbtu every year and ushering in of fully market-determined rates by January 2027.

The panel has also 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.