The Cabinet Committee on Economic Affairs on Thursday, April 6,  okayed a new gas pricing formula to reduce prices of piped natural gas (PNG) and compressed natural gas (CNG). It also okayed a new space policy laying down roles of various private and public entities besides the setting up of a Rs 2,600 crore Laser Interferometer Gravitational-Wave Observatory (LIGO) in Hingoli, Maharashtra.

Union Minister for Information and Broadcasting Anurag Thakur announced the new gas pricing policy saying domestic and industrial users of PNG would see a 10 per cent reduction in pricing. The reduction in CNG, used in vehicles, would also be reduced.

This has come about after an amendment to domestic gas pricing guidelines issued in 2014. As off now the gas pricing is done as per average price at four international gas hubs, said Thakur. In the past two years the international prices has gone up $1.79 dollar Metric Million British Thermal Unit (MMBtu) in October 2020 to $ 8.57 MMBtu in October 2022.

Now the domestic gas price will be linked to imported crude price. It will be at 10 per cent of crude pride.

A ‘base floor price’ of $ 4 MMBtu has been fixed and a ‘ceiling price’ of $ 6.50 MMBtu has been fixed. These prices will apply to all gas from ONGC and Oil India fields. The price band is for two years henceforth it will rise at 0.25 cents every year. Union Minister of State in the Prime Minister’s Office, Dr Jitendra Singhsaid the new space policy aims to enhance the role of Department of Space, boost activities of ISRO missions and give a larger participation of research, academia, startups and industry.

Some three years ago, space was openedto private participation and after three years ISRO has 150 startups. The ‘InSpace’ was created as entity easing public private participation and is like a coordinator between public and private sector. The policy will lay down the roles of all.