ONGC to take Rs 7,000 cr hit over gas price; govt may alter pricing formula

Prices touched historic low of $1.79 per mmBtu for October-period of current financial year, down 25% from $2.39 per mmBtu during April-September period

Topics
ONGC | Gas price | Centre

Shine Jacob  |  New Delhi 

State-run Oil and Natural Gas Corporation (ONGC) on Friday said that its revenue would be hit by around Rs 7,000 crore due to a low gas price of $1.79 per million metric British thermal unit (mmBtu).

To tide over this crisis, the government is mulling options to revise the pricing formula and a committee is looking into it, ONGC chairman and managing director Shashi Shankar told the media on Friday. “Our average cost of production comes to around $3.6-3.7 mmBtu. At the current price, we are losing around $2 per mmBtu, which will lead to an annual loss of around Rs 7,000 ...

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First Published: Fri, October 09 2020. 18:49 IST
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