Reliance KG gas pricing in with Doc

NEW DELHI: RIL’s gas pricing formula, which has been the focus of the ongoing gas debate, is being independently examined by the PM’s Economic Advisory Council (EAC) chairman C Rangarajan.

It is understood the PMO had asked EAC to look into the formula even as the committee of secretaries (CoS) deliberates on the larger issue of pricing and allocation of natural gas.

Senior officials involved in examining RIL’s pricing say the end-price of $4.33 per million British thermal units (mmbtu) is reasonable in terms of prevailing rates of natural gas in the domestic and global markets. But they have some reservations over the formula, devised by RIL to derive the value of the gas. They say almost 97% of the component in RIL’s formula is the fixed component.

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