At present, 6.7 per cent of India’s overall energy mix is contributed by natural gas and the country is aiming to double this figure to 15 per cent by 2030. In its latest presentation, RIL noted that for this achievement, an investment of at least $3 trillion would be required and that would only be possible with a market-led pricing policy.
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A week ago, the government had hiked the price of natural has by 40 per cent in line with international prices after which, supplying industries that include city gas operators had asked government to rationalise the rates citing inflation concerns. After the rate hike, Mahanagar Gas Limited (MGL) had announced hikes in the Compressed Natural Gas (CNG) price by Rs 6 per kg and Piped Natural Gas (PNG) price by Rs 4 per standard cubic metre.
This is not the first time that the RIL has advocated for removal of the price capping on gas prices. Back in July, PTI quoted Sanjay Roy — who spearheads Reliance’s Oil and Gas Business — speaking on the need to remove price ceiling.
“We do see that the domestic price ceiling remains disconnected (with global prices), whether the prices are elevated or when prices fall. And you know we are continuing our advocacy for removal of ceiling prices. Overall, we expect higher gas price realizations in FY23 and in the quarters to come,” he said in July.
At present, 6.7 per cent of India’s overall energy mix is contributed by natural gas and the country is aiming to double this figure to 15 per cent by 2030. In its latest presentation, RIL noted that for this achievement, an investment of at least $3 trillion would be required and that would only be possible with a market-led pricing policy.
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The government sets gas prices every six months based on international rates. In the backdrop of Russia-Ukraine war, the gas prices touched $6.10 per million British thermal units (mBtu) for old oil fields in the first half of FY23, moving to $8.57 per mBtu in the second half, said the Business Standard report.
