Lok Sabha Question No. 3199 (UNSTARRED), answered on 2016-12-05
Subject: Domestic Demand of Oil
Ministry: PETROLEUM AND NATURAL GAS
Asked by: ARVIND GANPAT SAWANT, DUSHYANT CHAUTALA, PREM SINGH CHANDUMAJRA, SURESH KODIKUNNIL, M. K. RAGHAVAN, MALLIKARJUN  KHARGE, M. UDHAYAKUMAR, C.S. PUTTARAJU, J. JAYASINGH THIYAGARAJ NATTERJEE

## LOK SABHA

## UNSTARRED QUESTION NO.3199

## TO BE ANSWERED ON 5 TH  DECEMBER, 2016 DOMESTIC DEMAND OF OIL

3199.   SHRI ARVIND SAWANT:

SHRI DUSHYANT SINGH:

PROF. PREM SINGH CHANDUMAJRA:

SHRI KODIKUNNIL SURESH:

SHRI M.K. RAGHAVAN:

SHRI MALLIKARJUN KHARGE:

ADV. M. UDHAYAKUMAR:

SHRI C.S. PUTTA RAJU:

SHRI J.J.T. NATTERJEE:

## isVªksfy;e vkSj izkÑfrd xSl ea=h

## Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a) the month-wise details of increase/ decrease in crude oil prices during the last three years and the current year and share of major exporting countries which exported oil to India along with quantum of amount saved/utilised due to fall in oil prices by the Government;
- (b) the rank of India in respect of total oil consumption and percentage of oil consumed by India against total world production of oil, country-wise;
- (c)  whether  the  prices  of  LPG  and  other  petroleum  products  are  reduced  in  proportion  to reduction in crude oil prices and if so, the details thereof along with steps taken to reduce the prices of petroleum products/cooking gas to protect the rural poor, product-wise; and
- (d) whether the Government has relaxed/ proposes to relax policy bottlenecks in certain areas of the oil industry and if so, the details thereof along with salient features and key provisions of domestic gas pricing formula announced by the Government?

## ANSWER

## isVªksfy;e vkSj izkÑfrd xSl ea=h ( Lora= izHkkj ) ¼Jh /keZsUnz iz/kku½

## MINISTER OF STATE (I/C) IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a): The monthly average prices of Indian basket crude oil during the last three years and the current year are given in Annexure I. The details of share of major exporting countries that exported oil to India are given in Annexure II. The details of value of import for the last three years are as under:

## (in Million US $)

|               |   2013-14 |   2014-15 |   2015-16 |
|---------------|-----------|-----------|-----------|
| Crude         |    142962 |    112744 |     63972 |
| Products      |     12466 |     12138 |      9952 |
| TOTAL IMPORTS |    155427 |    124882 |     73924 |

- (b): Total consumption of oil in India during last 3 Calendar years, as per BP Statistics , published in June 2016, along with percentage of oil consumed by India against total world's Oil consumption is given as follows :
- (c): Retail  Selling  Price  of  sensitive  petroleum  products  in  the  country  are  linked  to international  products  prices.    The  prices  of  Petrol  and  Diesel  have  been  made  market determined by the Government effective 26 th June, 2010 and 19 th October, 2014 respectively. Since then, the Public Sector Oil Marketing Companies (OMCs) take appropriate decision on pricing of Petrol and Diesel in line with their international prices and other market conditions. Further,  Government continues to modulate the effective price to consumer for Subsidized Domestic  LPG  and  Retail  Selling  Price  (RSP)  of  PDS  Kerosene.    As  per  the  Refinery Transfer Price (RTP) effective 1.11.2016, the Public Sector OMCs are providing subsidy of Rs.  12  per  litre  on  sale  of  PDS  Kerosene  and  Rs.98.86/cylinder  (14.2  kg)  on  Subsidized Domestic LPG.
- (d): Government  has  taken  several  steps  for  ensuring  policy  based  administration  and easing  out  contractual  rigidities.  The  policy  framework  for  Relaxations,  Extension  and clarification at the Development  and  Production  stage under PSC  regime  for early Monetization  of  hydrocarbon  Discoveries  policy  on  Testing  Requirements,  Policy  for Extension of PSCs have helped in easing out the rigidities and promoting a transparent and fair  administration.  These  initiatives  have  taken  many  blocks  forward  and  promoted  E&P activities in the country.

|                                               | 2013   | 2014   | 2015   |
|-----------------------------------------------|--------|--------|--------|
| Consumption of Oil (In Million metric tonnes) | 175.3  | 180.8  | 195.5  |
| %age of world's total Oil consumption         | 4.2%   | 4.2%   | 4.5%   |
| Rank Of India in world's in consumption       | 4 th   | 4 th   | 3 rd   |

Government of India has notified the New Domestic Natural Gas Pricing Guidelines, 2014 which provides for a formula for calculation of  domestic natural  gas price on six monthly basis. The pricing formula envisages weighted average of prices of major international hubs as detailed at Annexure III

The pricing formula can be taken as the economically appropriate estimate of arms length competitive  price  of  domestic  gas  and  aims  at  maintaining  a  fine  balance  between  the requirements of producing and consuming sectors.

x-x-x-x-x

Annexure referred to in reply to part (a) of the Lok Sabha Unstarred Question No. 3199 asked by  Shri  Arvind  Sawant,  Shri  Dushyant  Singh,  Rof.  Prem  Singh  Chandumajra,Shri Kodikunnil Suresh, Shri M.K. Raghavan, Shri Mallikarjun Kharge, Adv. M. Udhayakumar,  Shri  C.S.  Putta  Raju  and  Shri  J.J.T.  Natterjee  to  be  answered  on  5 th December, 2016 regarding 'Domestic Demand of Oil'.

## Monthly average prices of Indian basket of crude oil

($/bbl)

|           |   2013-14 |   2014-15 |   2015-16 | Upto November, 2016   |
|-----------|-----------|-----------|-----------|-----------------------|
| January   |    109.55 |    105.29 |     46.59 | 28.08                 |
| February  |    112.68 |    106.19 |     56.43 | 30.53                 |
| March     |    106.45 |    105.3  |     55.18 | 36.42                 |
| April     |    101.57 |    105.56 |     59.07 | 39.88                 |
| May       |    101.1  |    106.85 |     63.82 | 45.01                 |
| June      |    101.11 |    109.05 |     61.75 | 46.96                 |
| July      |    104.86 |    106.3  |     56.3  | 43.52                 |
| August    |    108.45 |    101.89 |     47.33 | 44.38                 |
| September |    109.47 |     96.96 |     46.1  | 44.48                 |
| October   |    107.37 |     86.83 |     46.68 | 49.25                 |
| November  |    106.55 |     77.58 |     42.5  | 43.49                 |
| December  |    108.72 |     61.21 |     35.68 |                       |

Note - The composition of Indian Basket of Crude represents Average of Oman & Dubai for sour grades and Brent (Dated) for sweet grade in the ratio of 71.03:28.97 during 2015-16, 72.28:27.72 during 2014-15, 72.04:27.96 for 2013-14 & 68.2:31.8 for 2012-13.

## Annexure-II

Annexure  referred  to  in  reply  to  part  (a)  of  the  Lok  Sabha  Unstarred  Question  No.  3199  asked  by  Shri Arvind Sawant, Shri Dushyant Singh, Rof. Prem Singh Chandumajra,Shri Kodikunnil Suresh, Shri M.K. Raghavan, Shri Mallikarjun Kharge, Adv. M. Udhayakumar, Shri C.S. Putta Raju and Shri J.J.T. Natterjee to be answered on 5 th December, 2016 regarding 'Domestic Demand of Oil'.

| Percentage share of imported crude oil: Region wise/country wise   | Percentage share of imported crude oil: Region wise/country wise   | Percentage share of imported crude oil: Region wise/country wise   | Percentage share of imported crude oil: Region wise/country wise   | Percentage share of imported crude oil: Region wise/country wise   | Percentage share of imported crude oil: Region wise/country wise   | Percentage share of imported crude oil: Region wise/country wise   | Percentage share of imported crude oil: Region wise/country wise   | Percentage share of imported crude oil: Region wise/country wise   | Percentage share of imported crude oil: Region wise/country wise   | Percentage share of imported crude oil: Region wise/country wise   |
|--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|
| (Million metric tonne)                                             | (Million metric tonne)                                             | (Million metric tonne)                                             | (Million metric tonne)                                             | (Million metric tonne)                                             | (Million metric tonne)                                             | (Million metric tonne)                                             | Percentage Share                                                   | Percentage Share                                                   | Percentage Share                                                   | Percentage Share                                                   |
| Region                                                             | Sl. no.                                                            | Country                                                            | 2013-14                                                            | 2014-15                                                            | 2015-16                                                            | 2016-17 (Apr-Sep) (P)                                              | 2013-142014-15                                                     |                                                                    | 2015-16                                                            | 2016-17 (Apr-Sep) (P)                                              |
| Middle East                                                        | 1                                                                  | Iran                                                               | 11.0                                                               | 11.0                                                               | 12.7                                                               | 12.1                                                               | 5.8                                                                | 5.8                                                                | 6.3                                                                | 11.3                                                               |
| Middle East                                                        | 2                                                                  | Iraq                                                               | 24.6                                                               | 24.5                                                               | 36.8                                                               | 19.6                                                               | 13.0                                                               | 12.9                                                               | 18.1                                                               | 18.3                                                               |
| Middle East                                                        | 3                                                                  | Kuwait                                                             | 20.4                                                               | 17.9                                                               | 11.0                                                               | 5.1                                                                | 10.8                                                               | 9.4                                                                | 5.4                                                                | 4.7                                                                |
| Middle East                                                        | 4                                                                  | Oman                                                               | 2.1                                                                | 0.8                                                                | 0.6                                                                | 0.4                                                                | 1.1                                                                | 0.4                                                                | 0.3                                                                | 0.4                                                                |
| Middle East                                                        | 5                                                                  | Qatar                                                              | 5.1                                                                | 4.5                                                                | 4.0                                                                | 3.0                                                                | 2.7                                                                | 2.4                                                                | 2.0                                                                | 2.8                                                                |
| Middle East                                                        | 6                                                                  | Saudi Arabia                                                       | 38.2                                                               | 35.0                                                               | 40.4                                                               | 20.4                                                               | 20.2                                                               | 18.5                                                               | 19.9                                                               | 19.1                                                               |
| Middle East                                                        | 7                                                                  | UAE                                                                | 14.0                                                               | 16.1                                                               | 15.7                                                               | 8.3                                                                | 7.4                                                                | 8.5                                                                | 7.7                                                                | 7.7                                                                |
| Middle East                                                        | 8                                                                  | Yemen                                                              | 0.5                                                                | 0.2                                                                | 0.0                                                                | 0.0                                                                | 0.3                                                                | 0.1                                                                | 0.0                                                                | 0.0                                                                |
|                                                                    |                                                                    | Sub total                                                          | 115.9                                                              | 109.9                                                              | 121.2                                                              | 68.8                                                               | 61.2                                                               | 8.0                                                                | 59.8                                                               | 64.5                                                               |
| Africa                                                             | 9                                                                  | Algeria                                                            | 0.5                                                                | 0.4                                                                | 0.5                                                                | 0.9                                                                | 0.3                                                                | 0.2                                                                | 0.3                                                                | 0.9                                                                |
| Africa                                                             | 10                                                                 | Angola                                                             | 8.2                                                                | 7.1                                                                | 7.4                                                                | 3.4                                                                | 4.3                                                                | 3.8                                                                | 3.6                                                                | 3.2                                                                |
| Africa                                                             | 11                                                                 | Cameroon                                                           | 0.7                                                                | 1.3                                                                | 1.4                                                                | 0.7                                                                | 0.4                                                                | 0.7                                                                | 0.7                                                                | 0.7                                                                |
| Africa                                                             | 12                                                                 | Chad                                                               | 0.0                                                                | 0.3                                                                | 1.2                                                                | 0.4                                                                | 0.0                                                                | 0.1                                                                | 0.6                                                                | 0.4                                                                |
| Africa                                                             | 13                                                                 | Congo                                                              | 0.0                                                                | 0.6                                                                | 0.4                                                                | 0.1                                                                | 0.0                                                                | 0.3                                                                | 0.2                                                                | 0.1                                                                |
| Africa                                                             | 14                                                                 | Egypt                                                              | 2.6                                                                | 2.5                                                                | 2.7                                                                | 1.5                                                                | 1.4                                                                | 1.3                                                                | 1.3                                                                | 1.4                                                                |
| Africa                                                             | 15                                                                 | Equatorial Guinea                                                  | 0.4                                                                | 1.4                                                                | 1.4                                                                | 1.1                                                                | 0.2                                                                | 0.8                                                                | 0.7                                                                | 1.0                                                                |
| Africa                                                             | 16                                                                 | Kenya                                                              | 0.0                                                                | 0.0                                                                | 0.0                                                                | 0.0                                                                | 0.0                                                                | 0.0                                                                | 0.0                                                                | 0.0                                                                |
| Africa                                                             | 17                                                                 | Gabon                                                              | 0.8                                                                | 0.7                                                                | 0.1                                                                | 0.1                                                                | 0.4                                                                | 0.4                                                                | 0.0                                                                | 0.1                                                                |
| Africa                                                             | 18                                                                 | Ivory Coast                                                        | 0.0                                                                | 0.0                                                                | 0.1                                                                | 0.1                                                                | 0.0                                                                | 0.0                                                                | 0.1                                                                | 0.1                                                                |
| Africa                                                             | 19                                                                 | Libya                                                              | 0.3                                                                | 0.0                                                                | 0.0                                                                | 0.0                                                                | 0.1                                                                | 0.0                                                                | 0.0                                                                | 0.0                                                                |
| Africa                                                             | 20                                                                 | Nigeria                                                            | 16.4                                                               | 17.8                                                               | 23.4                                                               | 8.5                                                                | 8.6                                                                | 9.4                                                                | 11.5                                                               | 8.0                                                                |
| Africa                                                             | 21                                                                 | Sudan                                                              | 0.6                                                                | 0.9                                                                | 0.2                                                                | 0.0                                                                | 0.3                                                                | 0.5                                                                | 0.1                                                                | 0.0                                                                |
| Africa                                                             |                                                                    | Sub total                                                          | 30.4                                                               | 33.0                                                               | 38.8                                                               | 16.9                                                               | 16.1                                                               | 7.4                                                                | 19.2                                                               | 15.9                                                               |
| Asia                                                               | 22                                                                 | Brunei                                                             | 1.1                                                                | 1.3                                                                | 1.3                                                                | 0.8                                                                | 0.6                                                                | 0.7                                                                | 0.6                                                                | 0.7                                                                |
| Asia                                                               |                                                                    | Japan                                                              |                                                                    |                                                                    |                                                                    |                                                                    | 0.1                                                                | 0.0                                                                | 0.2                                                                | 0.0                                                                |
| Asia                                                               | 24                                                                 |                                                                    | 0.1                                                                | 0.0                                                                | 0.3                                                                | 0.0                                                                |                                                                    |                                                                    |                                                                    |                                                                    |
| Asia                                                               | 25                                                                 | Cambodia                                                           | 0.0                                                                | 0.0                                                                | 0.2                                                                | 0.0                                                                | 0.0                                                                | 0.0                                                                | 0.1                                                                | 0.0                                                                |
| Asia                                                               | 26                                                                 | Indonesia                                                          | 0.0                                                                | 0.0                                                                | 0.1                                                                | 0.4                                                                | 0.0                                                                | 0.0                                                                | 0.0                                                                | 0.3                                                                |
| Asia                                                               | 27                                                                 | Pakistan                                                           | 0.0                                                                | 0.0                                                                | 0.05                                                               | 0.0                                                                | 0.0                                                                | 0.0                                                                | 0.02                                                               | 0.0                                                                |
| South                                                              | 28                                                                 | Brazil                                                             |                                                                    |                                                                    |                                                                    | 1.5                                                                |                                                                    |                                                                    |                                                                    |                                                                    |
|                                                                    |                                                                    |                                                                    | 3.4                                                                | 4.1                                                                | 4.0                                                                |                                                                    | 1.8                                                                | 2.2                                                                | 2.0                                                                | 1.4                                                                |
| America                                                            | 29                                                                 | Columbia                                                           | 6.3                                                                | 4.2                                                                | 1.2                                                                | 0.0                                                                | 3.3                                                                | 2.2                                                                | 0.6                                                                | 0.0                                                                |

|                       | 30   | Ecuador          | 0.3   | 1.6   | 1.5   | 0.3   | 0.1   | 0.9   | 0.7   | 0.3   |
|-----------------------|------|------------------|-------|-------|-------|-------|-------|-------|-------|-------|
|                       | 31   | Argentina        | 0.2   | 0.1   | 0.2   | 0.0   | 0.1   | 0.1   | 0.1   | 0.0   |
|                       | 32   | Venezuela        | 21.6  | 24.4  | 23.6  | 12.3  | 11.4  | 12.9  | 11.7  | 11.5  |
|                       |      | Sub total        | 31.7  | 34.5  | 30.5  | 14.1  | 16.8  | 8.2   | 15.1  | 13.2  |
|                       | 33   | Azerbaijan       | 1.4   | 1.1   | 0.7   | 1.1   | 0.7   | 0.6   | 0.3   | 1.0   |
| Eurasia               | 34   | Kazakhstan       | 0.5   | 0.5   | 0.5   | 0.1   | 0.3   | 0.3   | 0.3   | 0.1   |
|                       | 35   | Russia           | 0.1   | 0.3   | 0.4   | 0.3   | 0.1   | 0.1   | 0.2   | 0.3   |
|                       |      | Sub total        | 2.1   | 1.9   | 1.6   | 1.4   | 1.1   | 1.0   | 0.8   | 1.3   |
| North                 | 36   | Canada           | 0.2   | 0.2   | 0.0   | 0.0   | 0.1   | 0.1   | 0.0   | 0.0   |
|                       | 37   | Mexico           | 4.9   | 5.1   | 4.9   | 2.2   | 2.6   | 2.7   | 2.4   | 2.0   |
| America               |      | Sub total        | 5.1   | 5.2   | 5.0   | 2.2   | 2.7   | 2.8   | 2.5   | 2.0   |
|                       | 38   | Albania          | 0.3   | 0.1   | 0.0   | 0.0   | 0.1   | 0.04  | 0.0   | 0.0   |
|                       |      | Sub total        | 0.3   | 0.1   | 0.0   | 0.0   | 0.1   | 0.0   | 0.0   | 0.0   |
| Australia             | 39   | Australia        | 0.4   | 0.1   | 0.5   | 0.2   | 0.2   | 0.1   | 0.3   | 0.2   |
|                       |      | Total            | 189.2 | 189.4 | 202.9 | 106.8 | 100.0 | 100.0 | 100.0 | 100.0 |
| Source: Oil companies |      | (P): Provisional |       |       |       |       |       |       |       |       |

Annexure referred to in reply to part (d) of the Lok Sabha Unstarred Question No. 3199 asked by Shri Arvind Sawant, Shri Dushyant Singh, Rof. Prem  Singh Chandumajra,Shri Kodikunnil Suresh, Shri M.K. Raghavan, Shri Mallikarjun Kharge, Adv. M. Udhayakumar, Shri C.S. Putta Raju and Shri J.J.T. Natterjee to be answered on 5th December, 2016 regarding 'Domestic Demand of Oil'.

## (TO BE PUBLISHED IN THE GAZETTE OF INDIA,

## EXTRAORDINARY, PART 1, SECTION 1)

## GOVERNMENT OF INDIA

## MINISTRY OF PETROLEUM AND NATURAL GAS

New Delhi, Dated:

25 th  October, 2014

## New Domestic Natural Gas Pricing Guidelines, 2014

No.22013/27/2012-ONG D.V. -In supersession of this Ministry's Gazette notification no. 22011/3/2012-ONG.D.V dated 10.1.2014, the Government of India hereby  notifies  the  New  Domestic  Natural  Gas  Pricing  Guidelines,  2014,  as hereunder:-

1. The wellhead gas price* (P), under these guidelines would be determined as per the formula given below:-

<!-- formula-not-decoded -->

<!-- formula-not-decoded -->

Where

- (i) VHH  =  Total  annual  volume  of  natural  gas  consumed  in  USA  & Mexico.
- (ii) VAC = Total annual volume of natural gas consumed in Canada.
- (iii) VNBP = Total annual volume of natural gas consumed in European Union  (EU)  and  Former  Soviet  Union  (FSU)  countries,  excluding Russia.
- (iv) VR = Total annual volume of natural gas consumed in Russia.
- (v) PHH and PNBP are the annual average of daily prices at Henry Hub (HH)  and  National  Balancing  Point  (NBP)  respectively,  less  the transportation and treatment charges as given in para 2.

(vi) PAC  and  PR  are  the  annual  average  of  monthly  prices  at  Alberta Hub  and  Russia  (as  published  by  Federal  Tariff  of  the  Russian Government or equivalent source) respectively, less the transportation and treatment charges as given in para 2. gas. In case of on-land blocks, the price receivable by

(*Well  head  price  refers  to  the  price  of  gas  receivable  by  the producer of gas at the contract area/lease area from the buyer of the contractor  (producer)  in  the  contract  area  will  be  the  well  head price. In case of offshore blocks, if the gas is processed and sold in the offshore contract area, the price receivable at the offshore will be  the  well  head  price.  If  the  gas  is  brought  to  landfall  point  for processing and is sold at landfall point, the facilities located in the landfall point will be considered part of the contract area and the price receivable at land fall point will be the well head price).

2. The wellhead price for three different hubs and Russia would be determined by  deducting  US  $  0.50/MMBTU  towards  transportation  and  treatment  charges from each of the three Hub prices and Russian price.
3. The gas price, determined, under these guidelines would be applicable to all gas produced  from  nomination  fields  given  to  ONGC  and  OIL  India,  New Exploration and Licensing Policy (NELP) blocks, such Pre-NELP blocks where, the Production Sharing Contract, (PSC) provides for Government approval of gas prices and Coal Bed Methane (CBM) blocks except as indicated in para 4 and 5 below.
4. The gas price, so determined under these guidelines shall not be applicable, where prices have been fixed contractually for a certain period of time, till the end of such period. This gas price shall also not be applicable where the PSC concerned provides for a specific formula for natural gas price indexation/fixation and to such Pre-NELP PSCs which do not provide for Government approval of formula/basis for gas  prices.  Further,  the  pricing  of  natural  gas  from  small/isolated  fields  in  the nomination blocks of NOCs will continue to be governed by the extant guidelines in respect of these fields issued on 8th July, 2013.
5. The  matter  relating  to  cost  recovery  on  account  of  shortfall  in  envisaged production from D1, D3 discoveries of Block KG-DWN-98/3 is under arbitration. The difference between the price, determined under these guidelines converted to NCV basis and the present price (US $ 4.2 per million BTU) would be credited to the gas pool account maintained by GAIL and whether the amount so collected is payable  or  not,  to  the  contractors  of  this  Blocks,  would  be  dependent  on  the outcome of the award of pending arbitration and any attendant legal proceedings.
6. The periodicity of price determination/notification shall be half yearly. The price and volume data used for calculation of price under these guidelines shall be the trailing four quarter data with one quarter lag. The first price on the basis of aforementioned formula in these guidelines would be determined on the basis of price prevailing at Henry Hub, NBP, Alberta Canada and Russia, between 1 st  July,

2013 and 30 th  June, 2014. This price would come into effect from 1 st  November, 2014 and would remain valid till 31 st  March, 2015. Thereafter, it would be revised for the period 1 st  April, 2015 to 30 th  September, 2015 on the basis of said prices prevalent between 1 st  January, 2014 and 31 st  December, 2014, i.e., with the lag of a  quarter  and  so  on.  The  price  determined  under  these  guidelines  would  be announced in advance of the half year, for which it is applicable.

7. The price determined under these guidelines would be applied prospectively with effect from 1 st  November, 2014.
8. Director General of Petroleum Planning and Analysis Cell (DG PPAC) under the  Ministry  of  Petroleum  and  Natural  Gas  shall  notify  the  periodic  revision  of prices under these guidelines.
9. For all discoveries after the issuance of these guidelines, in Ultra Deep Water Areas, Deep Water Areas and High Pressure High Temperature (well head shut-in pressure  >  690  bars,  bottom  hole  temperature>  150  degree  centigrade)  areas,  a premium would be given on the gas price determined as per the formula given in para  1.  The  premium  under  this  para  shall  be  determined  as  per  prescribed procedure.
10. Price determined under these guidelines would be on GCV basis.
11. The price, determined under these guidelines would be in US $ per MMBTU.
12. In the North Eastern Region (NER), the 40% subsidy would continue to be available  for  gas  supplied  by  ONGC/OIL.  However,  as  private  operators  are  also likely  to  start  production  of  gas  in  NER,  and  would  be  operating  in  the  same market, this subsidy would also be available to them to incentivize exploration and production.
13. The  price  determined  under  these  guidelines  shall  be  applicable  to  all sectors uniformly.

Sd/-)

## ( Upendra Prasad Singh

Joint Secretary to the Government of India