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Kirit Parikh committee likely to recommend gas price cap | Awaaz Exclusive

Kirit Parikh committee likely to recommend gas price cap | Awaaz Exclusive

Kirit Parikh committee likely to recommend gas price cap | Awaaz Exclusive
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By CNBCTV18.com Oct 27, 2022 3:02:32 PM IST (Updated)

Prices of natural gas were increased 40 percent as part of the government's six-monthly review of prices on October 1.

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In what may come as a relief to gas-based fertiliser, power plants and consumers of CNG and PNG, the Kirit Parikh committee is likely to recommend an end-user gas price cap of $6-7 per mmbtu, sources told CNBC-Awaaz.
The committee is likely to submit its report to fix a fair price for end users by the first week of November, sources said.
The Government constituted the committee in September to fix the fair price for Natural Gas.
A final meeting of all stake holders has been called for on October 31 to finalise the report.
Sources say that the report will be divided into two halves. Recommendations will be for fertilisers and power plants and a separate list of recommendations will be for City Gas Distribution companies.
Prices of natural gas were increased 40 percent as part of the government's six-monthly review of prices on October 1.
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.
Recently global brokerage firm UBS gave a positive outlook to City Gas Distributors stocks. UBS noted that the gas companies have delivered gas costs for the second half of the July to September quarter 30 percent lower than the first half of the three-month period.
 
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