Gas Pricing Recommendation - Legacy-Field Gas Producers May Lose Rs 23,000 Crore In FY24: CareEdge Analysis

CareEdge Research Report

In this report, we have analysed the impact of revision in the domestic gas pricing formula basis the recommendations of the Kirit Parikh committee.

• We believe recommendations of the Kirit Parikh committee as a great balancing act to safeguard the interest of gas consumers, city gas distribution companies and gas producers from difficult fields.

• It shall boost the use of natural gas and shall help the Government to contain high inflation.

• Free pricing of domestic gas from difficult fields would attract sizeable investment from upstream companies which could lead to higher domestic gas production in the long run.

• However, producers of domestic gas from legacy fields under APM pricing mechanism may stand to lose around Rs 23,000 crore in FY24.

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