Govt kicks off evaluation of gasoline worth formulation

Amid rising considerations over skyrocketing international pure gasoline costs jacking up vitality and industrial prices, and derailing the efforts to include inflation, the Centre has begun a evaluation of the pricing formulation for domestically-produced gasoline.

The Ministry of Petroleum and Natural Gas has arrange a committee beneath famous vitality skilled Kirit Parikh to evaluation the present gasoline pricing formulation, Reuters reported, including that the federal government order on this regard spoke of the necessity to guarantee “a fair price to the end consumer”. Though the committee has been requested to submit the report by the tip of this month, its inputs received’t be used for the following six month-to-month revision of the home gasoline costs for the October 2022-March 2023 interval.

The subsequent worth revision will probably result in an additional rise in costs of gasoline from each the conventional and the “difficult” fields, provided that the benchmark international costs have remained elevated.

In the final revision efficient April 1, 2022, the worth of pure gasoline from outdated and controlled fields was doubled to $6.1 per million British thermal unit (mBtu). Price of gasoline produced from tough fields like KG-D6 block operated by Reliance Industries-bp mix, was hiked from $6.13 earlier to 9.92/mBtu for the April-September 2022 interval.

Notably, the evaluation of gasoline pricing formulation taking client pursuits into consideration comes regardless of Reliance Industries repeatedly urging the Centre to take away the cap on gasoline worth because it “remains disconnected with the global price trends, irrespective of any rise or a fall”. Of pure gasoline consumed in India, nearly 50 per cent is imported LNG.