In News
- The Ministry of Petroleum and Natural Gas has set up a Committee under noted energy expert Kirit Parikh to review the current gas pricing formula.
Background
- The Centre has begun a review of the pricing formula for domestically-produced gas amid rising concerns over skyrocketing global natural gas prices jacking up energy and industrial costs, and derailing the efforts to contain inflation.
About Kirit Parikh committee
- The committee has been asked to submit the report by the end of this month, its inputs won’t be used for the next six monthly revision of the domestic gas prices for the October 2022-March 2023 period.
- The next price revision will likely lead to a further rise in prices of gas from both the normal and the “difficult” fields, given that the benchmark global prices have remained elevated.
- Composition : The committee, headed by energy expert Kirit Parikh, will include members from the fertiliser ministry, gas producers and buyers.
- Objective :The panel has been asked to recommend a fair price to end-consumers and also suggest a “market-oriented, transparent and reliable pricing regime for India’s long-term vision for ensuring a gas-based economy,
- It is aimed at lowering inflation and boosting use of cleaner fuel.
Source:IE
