Delhi: Reliance Industries (RIL) and Oil and Natural Gas Corporation (ONGC)
have asked the government''s committee of secretaries to do away with regulated
(read subsidised) price of gas.
week power and fertiliser companies had pitched for regulated prices to the same
Committee, set up by the government to take a final decision on gas prices.
and ONGC recently made gas finds in the Krishna-Godavari basin.
has made a strong case for a "market-determined" price of gas, and claims
to have discovered a price of $ 4.33 per million British thermal unit (mBtu) through
a competitive bidding process.
however has argued that there cannot be a market-determined price as there is
no real gas market in the country where demand is double the supply.
however wanted a higher price of gas as it is making an annual loss of Rs700 crore
on the gas business. This is because the company is forced to sells most of its
gas at a controlled price of below $3 per million British thermal unit (mBtu).
told the committee of secretaries it followed a transparent process to discover
of gas to be produced from its D6 block in the Krishna Godavari basin, refuting
allegations that the base of the 10 power and fertiliser companies it had called
for bidding for the gas was low.