May 29, 2014 5:28 PM

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CAG says RIL charged more than approved gas price

The Comptroller and Auditor General of India (CAG) has pulled up Reliance Industries for charging a rate in excess of the government approved price for its KG-D6 gas field. The CAG also criticised RIL for not including the marketing margin for calculating royalties and government's share.The government had in October 2007 set a sale price of 4.20 US Dollars per million British thermal unit based on the price discovered by RIL from key customers.The CAG in a draft report of audit of RIL's eastern offshore KG-D6 block spendings stated that the company charged 4.205 US Dollars per mmBtu from consumers, leading to excess billing of 9.68 million US Dollars .On top of this sale price, RIL charged a marketing margin of 0.135 US Dollars per mmBtu to cover its marketing risks.RIL, , had collected an amount of USD 261.33 million towards the marketing margin which has not been accounted for in the books says the CAG draft report .

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