Oil & Gas: Flip-flop on gas price hike - AMBIT

Press reports quoting unconfirmed sources that Finance Ministry has said that RIL should continue get a gas price of US$4.2/mmbtu for the "outstanding gas" instead of US$8-9/mmbtu approved by Cabinet Committee on Economic Affairs (CCEA). Our interaction with experts suggest that this could be interpreted as if (i) RIL's existing field could continue to get US$4.2/mmbtu gas price for next 4-5 years, or (ii) the press could be referring to one of the Ministries old recommendations to the CCEA, which the CCEA might have deliberated and rejected.

We await more clarity on the same.

Source : Equity Bulls

Keywords