New gas pricing formula difficult to implement: Tulsian
June 23rd, 2009
After news came in that the government was considering a new gas pricing formula for oil companies, stocks like Reliance Industries took a nosedive. However, Analyst SP Tulsian said implementing the new formula was difficult to implement. “When it comes to the government’s New Exploration Licensing Policy (NELP) and the discoveries that have been awarded, I don’t think it’s even legally tenable for it to change the pricing formula,” Tulsian said. “RIL’s KG basin falls under NELP I and we’re now in NELP VII. Still, yesterday there was a fear and because overall the market corrected in the latter half that further spoilt the day for Reliance Industries.”