Government of India notified "New Domestic Natural Gas Pricing Guidelines, 2014" on 25 October, 2014. This pricing mechanism is formula based and has been worked out considering the volumes and prices prevailing at major international markets such as Henry Hub, National Balancing Point, Alberta and Russia. The formula has been finalized considering the requirements of producing and consuming sectors, and has tried to make a fine balance between their interests.
The current price of Natural Gas as Notified under the ‘New Domestic Natural Gas Pricing Guidelines, 2014 for the period from October, 2017 to March, 2018 is USD 2.89/MMBTU on Gross Calorific Value basis.
The landed price of imported gas is based on the prices in International Market, Spot as well as long term contracts and transportation charges etc on mutually agreeable terms.
The government has provided marketing and pricing freedom with a price ceiling on gas produced from discoveries in Deep water, Ultra Deep water, and High Pressure-High Temperature areas. Government has also provided marketing and pricing freedom for the sale of crude oil and natural gas to be produced under the Discovered Small Fields Policy, 2015 and Hydrocarbon Exploration and Licensing Policy (HELP). In addition, the natural gas produced from Coal Bed Methane (CBM) blocks has been provided marketing including pricing freedom.