Politics
Trump, Biden neck-and-neck in N.Carolina, Georgia: Poll
Washington, Sep 28 (IANS) US President Donald Trump and his Democratic rival Joe Biden were neck-and-neck in the swing states of Georgia and North Car...Read more
Jordan Parliament dissolved ahead of Nov polls
Amman, Sep 28 (IANS) Jordan's Parliament has been dissolved in accordance with a royal decree ahead of the November 10 general elections.
The d...Read more
Leaves cancelled for Israeli combat troops, soldiers in training
Tel Aviv, Sep 28 (IANS) The Israel Defense Forces (IDF) have cancelled all leaves for combat troops and soldiers in training for at least the next mon...Read more
Mamata appoints Alapan Bandopadhyay as new WB Chief Secretary
Kolkata, Sep 28 (IANS) West Bengal Home Secretary Alapan Bandopadhyay has been appointed as the new Chief Secretary to the state government, Chief Min...Read more
Kerala flyover's demolition begins; to be rebuilt in 9 months
Kochi, Sep 28 (IANS) Authorities on Monday began the demolition of the Palarivattom flyover and maintained that a new structure would be ready in nine...Read more
Cong doing drama on the name of farmers: Prakash Javadekar
New Delhi, Sep 28 (IANS) Union Minister of Information and Broadcasting, Prakash Javadekar on Monday attacked the Congress after the Youth Congress wo...Read more
Pelosi says another Covid-19 stimulus plan still possible
Washington, Sep 28 (IANS) US House Speaker Nancy Pelosi has said that another Covid-19 stimulus plan was still possible as Democrat lawmakers were try...Read more
Punjab Youth Cong workers set tractor ablaze near India Gate, 5 detained (Ld)
New Delhi, Sep 28 (IANS) A day after President Ram Nath Kovind signed the Agriculture Bills and made them laws, the Punjab Youth Congress workers o...Read more
Big Ben to be on full display after 3 yrs
London, Sep 28 (IANS) Scaffolding hiding the roof of the Elizabeth Tower, which houses London's iconic Big Ben, will begin to be removed this after th...Read more
Heatwave, gusty winds heighten risk of California wildfires
San Francisco, Sep 28 (IANS) The US National Weather Service (NWS) has issued a red flag warning for nearly all of Northern California as a heatwave c...Read more
Domestic gas prices may rise as govt explores floor price mechanism
New Delhi, Sep 28 (IANS) CNG and piped natural gas prices could face an increase this festive season if the government implements a new floor price mechanism for gas produced from domestic fields by companies such as Oil and Natural Gas Corporation (ONGC).
Sources said the petroleum ministry is considering a proposal under which domestic gas will have a floor pricing that would prevent fuel prices from crashing below an identified threshold in the current subdued market conditions and insulate oil and gas explorers like ONGC from a tariff crash.
Talks are on to link gas prices with price Japan-Korea Marker, a benchmark index used to determine LNG tariff in North Asia with a discount.
With JKM prices hovering over $ 5 million British thermal units (mmBtu) even with day $ 1 mmBtu discount, the Indian gas floor price under this formula will be close to $ 4 mmBtu. This is much higher than the government administered price of $ 2.39 mmBtu for the April-October, 2020 period. And if implemented, it could increase the cost for all gas consumers.
"Nothing has been finalised on having a gas floor price as of now. A panel in the petroleum ministry is looking at various options and the best course would be adopted that has little impact on consumers but also supports oil and gas companies with remunerative and sustainable gas prices."
The average cost of gas production for the country's largest public sector oil company ONGC is about $3.7/mmBtu, much higher than the current regulated price of natural gas at $2.39/mmBtu. This is expected to fall further to about $1.9/mmBtu for the next six months beginning October 1 under the current formula, sources said.
Lower gas prices is bad news for ONGC as it would mean further suppressed margins and losses. The company is set to lose close to Rs 6,000 crore on low gas prices this year, brokerages have said.
Brokerages have put ONGC's FY22E gas price at US$3.6-4.2/mmbtu depending on discount to JKM price if the new floor price is implemented. With Low L NG liquefaction capacity addition ahead, JKM spot futures for FY22-FY26E are expected at US$5.2-5.8/mmbtu vs US$4.7-4.1/mmbtu in FY20-FY21E.
Oil minister Dharmendra Pradhan had said earlier that India will phase out price controls in natural gas and make it market-linked soon.
--IANS
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