The oil ministry has asked the Planning Commission to evolve a mechanism for averaging

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prices of costlier imported LNG with cheaper domestic gas.

“We have suggested the Planning Commission that a high-powered committee be formed on ‘pooled pricing’ of gas,” oil secretary S Sundareshan told reporters in New Delhi on Monday.

At present, companies pay different prices for natural gas sourced from different blocks in the country. For instance, gas sourced from Reliance Industries-operated D6 block in the KG basin is sold at $4.20 per mBtu, while gas from the Panna, Mukta and Tapti fields operated by British Gas is priced at $5.73 per mBtu.

Companies pay $5.50 per mBtu for gas from the Ravva field operated by Cairn India in Andhra Pradesh. Gas from ONGC’s C-series field is priced at $5.25 per mBtu. Consumers pay more than $10 per mBtu for imported LNG.

“It will be unreasonable to expect consumers to pay (such a price),” Sundareshan said. “The government expects a mechanism for pooled pricing of gas to be in place a year from now to ensure that consumers pay almost the same price for gas irrespective of the source.”

The energy advisor of the Planning Commission is likely to head the panel.

The Planning Commission has been requesting an inter-ministerial committee under the chairmanship of its energy advisor to formulate a policy for pooling of natural gas prices and devise pool operating guidelines to make the policy operational, Sundareshan said.