ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Pricing Domestic Natural Gas

The new formula for the pricing of natural gas produced in the country is an improvement on the Rangarajan formula. It corrects many of the computational flaws of the much-criticised approach of the previous government. However, there remain faults and there are conceptual flaws as well in the new formula, which if corrected should take the well-head price of gas to no more than $4.20 per million British thermal unit, rather than the price of $5.05 that has now been notified.
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