India’s Cabinet to Cap Gas Prices to Benefit Women Consumers

India’s Cabinet is expected to adopt a gas panel report this week, recommending a cap on the price of local gas at $6.50 per million British thermal units (mmBtu) from April. This move is aimed at ensuring fair prices for consumers, particularly women after state-set prices of gas rose to record highs.

Led by energy expert Kirit Parikh, the panel suggested a monthly price of gas produced from old blocks be fixed at 10% of the monthly average of the Indian crude basket, with a cap of $6.5/mmBtu and a floor price of $4/mmBtu. This cap will apply to industrial buyers and companies in the fertilizer and city gas distribution sectors and will be fixed on a monthly basis.

Over 80% of India’s yearly gas output comes from old fields owned by ONGC and Oil India Ltd. Women are among the largest consumer groups in these sectors, and this decision by the government is expected to benefit them. The current price of gas from old blocks is set at $8.57 and is valid from October to end-March.

The move is particularly significant for women, as they are disproportionately affected by high energy prices. It is hoped that this new pricing formula will provide relief to women consumers who use gas for cooking and heating, and to women entrepreneurs who run small businesses in the city gas distribution sector.

Staff Reporter