CURRENT AFFAIRS

Detailed explanation-1: -The Union Ministry of Petroleum and Natural Gas on 6 September 2022, has set up a committee to review the pricing formula for locally produced gas to ensure a “fair price to the end consumer". Chairman of the committee : The committee will be headed by former planning commission member Kirit Parikh.

Detailed explanation-2: -In September, the government constituted the committee, led by energy expert and former Planning Commission (since renamed NITI Aayog) member Kirit Parikh, to review the gas pricing formula for gas produced domestically with the aim to ensure a fair price even as global prices for gas remained high.

Detailed explanation-3: -The Kirit Parikh Committee, which recommended a floor and ceiling price for natural gas produced from legacy fields of state-owned producers to moderate input price for CNG and fertilizer, has favoured paying ONGC and OIL a premium of 20 per cent over such price for any new gas production they add from old fields.

Detailed explanation-4: -Kirit Parikh panel was set up by the Ministry of Petroleum and Natural Gas in June 2013 assigning it with the task to advice on Pricing Methodology for Diesel, Domestic LPG and PDS Kerosene.

Detailed explanation-5: -India imports more than 55% of its LPG requirement. Prices of LPG in the country are based on Saudi Contract Price (CP), the benchmark for international prices of LPG. For domestic LPG, the Government continues to modulate the effective price to consumer to insulate the common man from rise in international prices.