According to a government directive seen by Reuters, India has established a panel to assess the pricing formula for locally produced gas to assure “fair price to the end customer,” a move intended to reduce inflation and increase the use of cleaner fuel.

With a one-quarter lag, India ties regional gas pricing to a formula connected to international benchmarks, including Henry Hub, Alberta gas, NBP, and Russian gas. Due to a substantial jump in worldwide gas costs brought on by the crisis between Ukraine and Russia, local gas prices have reached a record high and are predicted to continue to grow.

It stated that the panel has till the end of the month to present its report.
According to a government source, the group’s suggestions will not be included in the upcoming six-month adjustment of local gas prices beginning in October, as implementation requires cabinet approval.
The committee will have representatives from the Ministry of fertiliser, gas producers, and gas purchasers under the direction of energy expert Kirit Parikh.