The Kirit Parikh committee, the government appointed panel to review the gas pricing formula is likely to recommend a complete liberalisation of natural gas prices by January 1, 2026, sources privy to the matter told CNBC-TV18.
The panel is likely to submit its report to the government on Wednesday, November 30.
Sources further added that the draft report has been circulated among the committee members and will be finalised tomorrow.
The committee has suggested a price cap for Administered Pricing Mechanism (APM) gas, including for ONGC and Oil India. However, sources said that the committee is unlikely to suggest any changes in prices of gas from different gas fields.
The shares of gas companies gained on the news on Monday.
On October 1, prices of natural gas were increased 40 percent as part of the government's six-monthly review of prices. The government sets the price of gas every six months, on April 1 and October 1, each year based on rates prevalent in gas surplus nations such as the US, Canada and Russia in one year with a lag of one quarter.
The Government constituted the Kirit Parikh Committee in September to fix the fair price for Natural Gas.
First Published: Nov 28, 2022 3:56 PM IST
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