(a) whether some norms have been prescribed for fixation of seliing price of gas in the
country;
(b) if so, the details thereof;
(c) the ratio of profit fixed on production of gas for gas producing companies;
(d) whether different gas producers sell gas at different rates to the consumers in the
country;and
(e) if so, the reasons therefor?
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS(SHRI PINSHA PATEL)
(a) to (c): There are broadly two pricing regimes for gas in the country, - gas priced under
Administered Pricing Mechanism (APM) and non-APM or free market gas. The price of APM gas is
set by the Government. The gas produced from the existing fields of ONGC and OIL, given to
them on nomination basis, is covered under the APM. APM gas is being supplied to the priority
sectors, viz., Power and fertilizer sectors; small scale consumers with allocation upto 0.05
MMSCMD; and specific end users committed under court orders. As regards non-APM/free market
gas, it is supplied to different consumers at market determined prices.The Government has
decided that future production of gas from New Exploration Licensing Policy (NELP) fields, as
also additional gas to be developed in future, by ONGC and OIL, as well as Joint Venture/Private
Companies, would be sold at market related prices. The price is to be fixed at arm`s length
price as per the provision of Production Sharing Contract (PSC) under NELP. Prior approval of
the Government has to be obtained for the formula or the basis on which the price is fixed.
(d) & (e): While APM gas is sold at the notified rates, gas produced from PSC fields by ONGC,
Oil India Ltd & private producers like BG / RIL / ONGC Consortium & Cairn / Videocon / ONGC
Consortium are sold at prices determined in terms of provisions of PSC.