The Central Government has notified changes to the New Domestic Gas Pricing Guidelines, 2014. This notification was issued on 7th April, 2023 and has come into effect from that same date.
Some of the changes contemplated by this notification are as follows:
- Domestic Natural Gas Price (APM price) shall be 10% of the Indian Crude Basket Price as defined by Petroleum Planning and Analysis Cell (PPAC) from time to time.
- The APM prices would be declared on monthly basis by PPAC on the last day of the current month
- PPAC shall notify prices under 2014 guidelines valid from 1.4.2023 till the date of issue of this notification as well the APM prices under this notification for the remaining period of April 2023 i.e. day after the day of notification to the end of the month. For subsequent months, the APM prices shall be applicable from 1st day of the month.
- For the gas produced by ONGC & OIL from their nomination fields, the APM price shall be subject to a floor and a ceiling.
- Supply of allocated APM gas from nomination fields of ONGC and OIL to all existing or future customers shall be subject to suitable take or pay obligations as may be notified by MoPNG or as contractually agreed to.
- Gas produced from new well or well intervention in the nomination fields of ONGC&OIL, where APM prices are subject to floor and ceiling, would be allowed a premium of 20% on these APM prices.
- PPAC has been mandated to prepare and maintain a portal for monitoring of CNG/PNG consumer prices on a dynamic basis