Oil ministry rejects gas price revision demand of RIL
12 Oct 2012 2:52 AM GMT
The oil ministry has rejected any change in the price of Reliance Industries' eastern offshore KG-D6 gas before April 2014, arguing that a higher price of fuel would result in USD 6.3 billion rise in subsidy burden.
In a note circulated to members of an empowered group of ministers [EGoM] for comments, the ministry said that RIL would get an additional revenue of USD 4.1 billion if the rates were hiked from the current USD 4.2 per million British thermal unit to the import parity rates of USD 14.2-14.51 per mmBtu, sources said.
While arguing that the government would get only USD 0.5 billion at current year production level of 25.08 million standard cubic meters per day, it did not mention that RIL had modified its January request for a price revision to clearly state that it was seeking rate revision only from 1 April 2014, when the current price is due to expire.
RIL first in June and then again on September 6 reiterated its demand for a price at par with the rate India is paying for import of liquefied natural gas [LNG] and gas imports from Turkmenistan, from April 1, 2014 when the current five-year period of USD 4.2 per mmBtu price expires.
In a note circulated to members of an empowered group of ministers [EGoM] for comments, the ministry said that RIL would get an additional revenue of USD 4.1 billion if the rates were hiked from the current USD 4.2 per million British thermal unit to the import parity rates of USD 14.2-14.51 per mmBtu, sources said.
While arguing that the government would get only USD 0.5 billion at current year production level of 25.08 million standard cubic meters per day, it did not mention that RIL had modified its January request for a price revision to clearly state that it was seeking rate revision only from 1 April 2014, when the current price is due to expire.
RIL first in June and then again on September 6 reiterated its demand for a price at par with the rate India is paying for import of liquefied natural gas [LNG] and gas imports from Turkmenistan, from April 1, 2014 when the current five-year period of USD 4.2 per mmBtu price expires.
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