With reference to the production and pricing of Natural Gas in India, consider the following statements:1. Domestically produced natural gas in India is priced on the basis of demand on a gas trading platform.2. Natural Gas in India falls under the purview of the Goods and Services Tax.3. Currently, India does not import natural gas from any country.Which of the statements given above are correct?a)1,2 and 3b)2 and 3 onlyc)1 and 3 onlyd)NoneCorrect answer is option 'D'. Can you explain this answer?

Explore Courses UPSC Exam UPSC Test Series Free Notes EduRev Infinity

Open App

UPSC Exam > UPSC Questions > With reference to the production and pricing ...

With reference to the production and pricing of Natural Gas in India, consider the following statements:
1. Domestically produced natural gas in India is priced on the basis of demand on a gas trading platform.
2. Natural Gas in India falls under the purview of the Goods and Services Tax.
3. Currently, India does not import natural gas from any country.Which of the statements given above are correct?

a)
1,2 and 3
b)
2 and 3 only
c)
1 and 3 only
d)
None

Correct answer is option 'D'. Can you explain this answer?

Join for Free

Join for Free

Verified Answer

With reference to the production and pricing of Natural Gas in India, ...

Domestic Gas Sources: The domestic gas in the country is being supplied from the oil & gas fields located in western and southeastern areas viz. Hazira basin, Mumbai offshore & KG basin as well as the North East Region (Assam & Tripura).
Recently the International Energy Agency (IEA) has slammed India's natural gas pricing policy, saying linking domestic production to very low global reference prices has reduced incentives for producers to raise supplies. Currently, the price of domestically produced natural gas is fixed by a formula that averages out rates in gas surplus nations such as Russia and the US. Hence statement 1 is not correct.
Natural Gas in India does not fall within the purview of GST. When the Goods and Services Tax was introduced on July 1, 2017, amalgamating 17 central and state levies, five commodities namely crude oil, natural gas, petrol, diesel, and aviation turbine fuel were kept out of its purview given the revenue dependence of state governments on this sector. Currently, natural gas is taxed under the VAT regime with VAT ranging from 3 percent to 20 percent across states. Hence statement 2 is not correct.
The IEA said for the share of environment-friendly fuel to rise, the government needs to ensure gas is treated on a level playing field with other fuels for taxation and is included under the Goods and Services Tax (GST). Bringing natural gas under the ambit of goods and services tax (GST) will not only make transport of the fuel across the country more efficient but also facilitate setting up of the much-discussed domestic gas trading hub.
With stagnant domestic output, India meets half of its gas needs through imports. Russia is one of the major countries to begin supplying long-term LNG to India after the United States, Australia, and Qatar. Hence statement 3 is not correct. In order to meet the gas demand, Liquefied Natural Gas (LNG) is imported through Open General License (OGL) in the country and it is imported by the gas marketer under various Long Term, Medium Term, and Spot contracts. The price and utilization of imported LNG are mutually decided by buyers and sellers. The price of the Natural Gas according to this formula currently is USD 3.23 per million British thermal units, half of what India pays for import of liquefied natural gas (LNG).
National Gas Grid: At present, there are about 16800 km long Natural Gas pipeline network which is operational in the country. In order to make available natural gas across the country, it has been envisaged to develop an additional about 14,300 km pipelines to complete the National Gas Grid. To promote the development of City Gas Distribution Network, the Government has accorded the priority in domestic gas allocation to PNG (Domestic) and CNG (Transport) segments. It has been decided to meet 100% gas requirement of CNG (T) and PNG(D) segments through the supply of domestic gas which is cheaper than imported gas. The India National Gas Grid Technical Assistance program stems from an agreement in September between PNGRB and the United States Trade Development Agency (USTDA).

View all questions of this test

Most Upvoted Answer

With reference to the production and pricing of Natural Gas in India, ...

Domestic Gas Sources: The domestic gas in the country is being supplied from the oil & gas fields located in western and southeastern areas viz. Hazira basin, Mumbai offshore & KG basin as well as the North East Region (Assam & Tripura).
Recently the International Energy Agency (IEA) has slammed India's natural gas pricing policy, saying linking domestic production to very low global reference prices has reduced incentives for producers to raise supplies. Currently, the price of domestically produced natural gas is fixed by a formula that averages out rates in gas surplus nations such as Russia and the US. Hence statement 1 is not correct.
Natural Gas in India does not fall within the purview of GST. When the Goods and Services Tax was introduced on July 1, 2017, amalgamating 17 central and state levies, five commodities namely crude oil, natural gas, petrol, diesel, and aviation turbine fuel were kept out of its purview given the revenue dependence of state governments on this sector. Currently, natural gas is taxed under the VAT regime with VAT ranging from 3 percent to 20 percent across states. Hence statement 2 is not correct.
The IEA said for the share of environment-friendly fuel to rise, the government needs to ensure gas is treated on a level playing field with other fuels for taxation and is included under the Goods and Services Tax (GST). Bringing natural gas under the ambit of goods and services tax (GST) will not only make transport of the fuel across the country more efficient but also facilitate setting up of the much-discussed domestic gas trading hub.
With stagnant domestic output, India meets half of its gas needs through imports. Russia is one of the major countries to begin supplying long-term LNG to India after the United States, Australia, and Qatar. Hence statement 3 is not correct. In order to meet the gas demand, Liquefied Natural Gas (LNG) is imported through Open General License (OGL) in the country and it is imported by the gas marketer under various Long Term, Medium Term, and Spot contracts. The price and utilization of imported LNG are mutually decided by buyers and sellers. The price of the Natural Gas according to this formula currently is USD 3.23 per million British thermal units, half of what India pays for import of liquefied natural gas (LNG).
National Gas Grid: At present, there are about 16800 km long Natural Gas pipeline network which is operational in the country. In order to make available natural gas across the country, it has been envisaged to develop an additional about 14,300 km pipelines to complete the National Gas Grid. To promote the development of City Gas Distribution Network, the Government has accorded the priority in domestic gas allocation to PNG (Domestic) and CNG (Transport) segments. It has been decided to meet 100% gas requirement of CNG (T) and PNG(D) segments through the supply of domestic gas which is cheaper than imported gas. The India National Gas Grid Technical Assistance program stems from an agreement in September between PNGRB and the United States Trade Development Agency (USTDA).

Answered by Notes Wala · View profile

Free Test

FREE

UPSC CSE Prelims Paper 1 (GS) Mock Test - 17
100 Ques | 120 Min

Start Free Test

View all free UPSC tests

Community Answer

With reference to the production and pricing of Natural Gas in India, ...

Domestic Gas Sources: The domestic gas in the country is being supplied from the oil & gas fields located in western and southeastern areas viz. Hazira basin, Mumbai offshore & KG basin as well as the North East Region (Assam & Tripura).
Recently the International Energy Agency (IEA) has slammed India's natural gas pricing policy, saying linking domestic production to very low global reference prices has reduced incentives for producers to raise supplies. Currently, the price of domestically produced natural gas is fixed by a formula that averages out rates in gas surplus nations such as Russia and the US. Hence statement 1 is not correct.
Natural Gas in India does not fall within the purview of GST. When the Goods and Services Tax was introduced on July 1, 2017, amalgamating 17 central and state levies, five commodities namely crude oil, natural gas, petrol, diesel, and aviation turbine fuel were kept out of its purview given the revenue dependence of state governments on this sector. Currently, natural gas is taxed under the VAT regime with VAT ranging from 3 percent to 20 percent across states. Hence statement 2 is not correct.
The IEA said for the share of environment-friendly fuel to rise, the government needs to ensure gas is treated on a level playing field with other fuels for taxation and is included under the Goods and Services Tax (GST). Bringing natural gas under the ambit of goods and services tax (GST) will not only make transport of the fuel across the country more efficient but also facilitate setting up of the much-discussed domestic gas trading hub.
With stagnant domestic output, India meets half of its gas needs through imports. Russia is one of the major countries to begin supplying long-term LNG to India after the United States, Australia, and Qatar. Hence statement 3 is not correct. In order to meet the gas demand, Liquefied Natural Gas (LNG) is imported through Open General License (OGL) in the country and it is imported by the gas marketer under various Long Term, Medium Term, and Spot contracts. The price and utilization of imported LNG are mutually decided by buyers and sellers. The price of the Natural Gas according to this formula currently is USD 3.23 per million British thermal units, half of what India pays for import of liquefied natural gas (LNG).
National Gas Grid: At present, there are about 16800 km long Natural Gas pipeline network which is operational in the country. In order to make available natural gas across the country, it has been envisaged to develop an additional about 14,300 km pipelines to complete the National Gas Grid. To promote the development of City Gas Distribution Network, the Government has accorded the priority in domestic gas allocation to PNG (Domestic) and CNG (Transport) segments. It has been decided to meet 100% gas requirement of CNG (T) and PNG(D) segments through the supply of domestic gas which is cheaper than imported gas. The India National Gas Grid Technical Assistance program stems from an agreement in September between PNGRB and the United States Trade Development Agency (USTDA).

View all answers Start learning for free

Explore Courses for UPSC exam

Similar UPSC Doubts

Q. With reference to the production and pricing of Natural Gas in India, consider the following statements: 1. Domestically produced natural gas in India is priced on the basis of demand on a gas trading platform.?

View answer

With reference to the Index of Industrial Production (IIP), consider the following statements:1. It is currently calculated using 2018-2019 as the base year.2. National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI) releases the IIP data.Which of the statements given above is/are correct?

View answer

With reference to the World Dairy Summit, consider the following statements:1. India currently is the largest milk producer in the world, contributing 21 percent of the total global milk production.2. Dr Verghese Kurien is the Father of White Revolution in India.Which of the statements given above is/are correct?

View answer

With reference to the World Dairy Summit, consider the following statements:1. India currently is the largest milk producer in the world, contributing 21 percent of the total global milk production.2. Dr Verghese Kurien is the Father of White Revolution in India.Which of the statements given above is/are correct?

View answer

Consider the following statements:Statement-I:Plastic production surged from 234 million tonnes in 2000 to 460 million tonnes in 2019, with projections of reaching 700 million tonnes by 2040.Statement-II:Plastic takes between 20 to 500 years to decompose, with less than 10% currently being recycled.Which one of the following is correct in respect of the above statements?

View answer

Top Courses for UPSCView all

Current Affairs & Hindu Analysis: Daily, Weekly & Monthly

Lucent for GK

History for UPSC CSE

Indian Polity for UPSC CSE

CSAT Preparation

Top Courses for UPSC

View all

With reference to the production and pricing of Natural Gas in India, consider the following statements:1. Domestically produced natural gas in India is priced on the basis of demand on a gas trading platform.2. Natural Gas in India falls under the purview of the Goods and Services Tax.3. Currently, India does not import natural gas from any country.Which of the statements given above are correct?a)1,2 and 3b)2 and 3 onlyc)1 and 3 onlyd)NoneCorrect answer is option 'D'. Can you explain this answer?

Share with a Friend

Answer this doubt

Question Description
With reference to the production and pricing of Natural Gas in India, consider the following statements:1. Domestically produced natural gas in India is priced on the basis of demand on a gas trading platform.2. Natural Gas in India falls under the purview of the Goods and Services Tax.3. Currently, India does not import natural gas from any country.Which of the statements given above are correct?a)1,2 and 3b)2 and 3 onlyc)1 and 3 onlyd)NoneCorrect answer is option 'D'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about With reference to the production and pricing of Natural Gas in India, consider the following statements:1. Domestically produced natural gas in India is priced on the basis of demand on a gas trading platform.2. Natural Gas in India falls under the purview of the Goods and Services Tax.3. Currently, India does not import natural gas from any country.Which of the statements given above are correct?a)1,2 and 3b)2 and 3 onlyc)1 and 3 onlyd)NoneCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to the production and pricing of Natural Gas in India, consider the following statements:1. Domestically produced natural gas in India is priced on the basis of demand on a gas trading platform.2. Natural Gas in India falls under the purview of the Goods and Services Tax.3. Currently, India does not import natural gas from any country.Which of the statements given above are correct?a)1,2 and 3b)2 and 3 onlyc)1 and 3 onlyd)NoneCorrect answer is option 'D'. Can you explain this answer?.

Solutions for With reference to the production and pricing of Natural Gas in India, consider the following statements:1. Domestically produced natural gas in India is priced on the basis of demand on a gas trading platform.2. Natural Gas in India falls under the purview of the Goods and Services Tax.3. Currently, India does not import natural gas from any country.Which of the statements given above are correct?a)1,2 and 3b)2 and 3 onlyc)1 and 3 onlyd)NoneCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.

Here you can find the meaning of With reference to the production and pricing of Natural Gas in India, consider the following statements:1. Domestically produced natural gas in India is priced on the basis of demand on a gas trading platform.2. Natural Gas in India falls under the purview of the Goods and Services Tax.3. Currently, India does not import natural gas from any country.Which of the statements given above are correct?a)1,2 and 3b)2 and 3 onlyc)1 and 3 onlyd)NoneCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of With reference to the production and pricing of Natural Gas in India, consider the following statements:1. Domestically produced natural gas in India is priced on the basis of demand on a gas trading platform.2. Natural Gas in India falls under the purview of the Goods and Services Tax.3. Currently, India does not import natural gas from any country.Which of the statements given above are correct?a)1,2 and 3b)2 and 3 onlyc)1 and 3 onlyd)NoneCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for With reference to the production and pricing of Natural Gas in India, consider the following statements:1. Domestically produced natural gas in India is priced on the basis of demand on a gas trading platform.2. Natural Gas in India falls under the purview of the Goods and Services Tax.3. Currently, India does not import natural gas from any country.Which of the statements given above are correct?a)1,2 and 3b)2 and 3 onlyc)1 and 3 onlyd)NoneCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of With reference to the production and pricing of Natural Gas in India, consider the following statements:1. Domestically produced natural gas in India is priced on the basis of demand on a gas trading platform.2. Natural Gas in India falls under the purview of the Goods and Services Tax.3. Currently, India does not import natural gas from any country.Which of the statements given above are correct?a)1,2 and 3b)2 and 3 onlyc)1 and 3 onlyd)NoneCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice With reference to the production and pricing of Natural Gas in India, consider the following statements:1. Domestically produced natural gas in India is priced on the basis of demand on a gas trading platform.2. Natural Gas in India falls under the purview of the Goods and Services Tax.3. Currently, India does not import natural gas from any country.Which of the statements given above are correct?a)1,2 and 3b)2 and 3 onlyc)1 and 3 onlyd)NoneCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice UPSC tests.

Explore Courses for UPSC exam