While the government has sent RIL's USD 0.135 marketing margin on the sale of KG D6 gas to the oil regulator for approval, the Mukesh Ambani led company has proposed to charge a USD 0.15 levy in lieu of marketing costs on the sale of gas produced from coal seams .

In newspaper advertisements issued on Friday calling for bids to purchase 3.5 million cubic metres a day of coal bed methane it plans to produce from its Sohagpur block in Madhya Pradesh by 2014 end, RIL said it will charge USD 0.15 per million British thermal units as a marketing margin over and above the gas sale price.

The Oil Ministry had on December 26 referred the USD 0.135 per mmBtu marketing margin RIL charges over and above the KG D6 gas sale price of USD 4.205 per mmBtu to the Petroleum and Natural Gas Regulatory Board after the levy was questioned by users like the fertiliser industry.

The ministry stated in its letter to the regulator said that "The government of India hereby entrusts the determination of the quantum of marketing margin chargeable on sale of natural gas to end consumers by each marketing entity on the basis of its actual marketing cost to the PNGRB.”

RIL had originally proposed a USD 0.15 per mmBtu marketing margin for KG D6 gas to cover risks like seller liabilities in case of non supply, customers drawing less than their quota, non payment of dues and settlement of disputes, but later agreed to a charge of USD 0.135 per mmBtu.

(Sourced from The Indian Express)