Gas Price: ONGC To Profit By Over 4000 Crore, Says Chairman

Industry, which was quick to welcome diesel deregulation as a highly progressive move, has generally not reacted to the new gas price, because it has been asking for at least its doubling to a little over $8 per unit.

"The price of fuel products such as diesel should reflect the true market value and this would also encourage all users to economise on their diesel consumption and hence align with the objective of promoting environmentally sustainable growth," Sidharth Birla, president of industry chamber FICCI, said in a statement.

Regarding the new price applying to gas from the Reliance Industries' (RIL) KG basin fields in the eastern offshore, the cabinet decided that as the matter was under arbitration, RIL would be paid the earlier price of $4.2 per unit till the shortfall quantity of gas is made good.

The arbitration concerns the penalty imposed by the oil ministry on the company for failing to meet output targets from the RIL-led consortium's D-1 and D-3 fields in the KG-D6 eastern offshore block to the extent of 1.9 trillion cubic feet of gas.

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