The government is planning to raise the price of state administered, or APM gas sold to sectors other than power and fertilizer by over 10% to USD 5.25 per million British thermal unit.

Natural gas produced by state owned Oil and Natural Gas Corp and Oil India Ltd from fields given to them on a nomination basis is sold under the administered pricing mechanism and is referred to as APM gas.

While the government had recently raised the price of APM gas sold to power and fertilizer units from about USD 1.79 to USD 4.20 per million British thermal units including royalty, the rate for gas sold to non-core sector industries remained at USD 4.75 per mmBtu.

The price ONGC will get is higher than the USD 4.205 per mmBtu rate set for Reliance's eastern offshore KG-D6 fields.

(Sourced from PTI)