Reliance Industries Limited to sell its gas at old price
RIL will continue to sell natural gas at the current rate until the next government decides on prices.
New Delhi: Reliance Industries will continue to sell natural gas from its eastern offshore KG-D6 fields at the current rate until the next government decides on a revision in prices.
Oil minister M. Veerappa Moily approved continuation of the existing rate of $4.2 per million British thermal units until the new government, which will be in place in May, decides on implementation of the Rangarajan formula.
He deferred the new pricing regime, which would have almost doubled gas rates from April 1, following advice from the Election Commission, oil ministry sources said.
The delay will not have a material bearing on 85 per cent of the gas produced in the country as firms such as ONGC can continue sales at $4.2 per mmBtu on existing contracts.
However, new contracts needed to be signed for KG-D6 as RIL’s current sales pacts expire at the end of the month.