Gas from PSU fields to cost $0.8/unit more- Oil & Gas-Energy-News By Industry-News-The Economic Times Gas from PSU fields to cost $0.8/unit more 5 Sep 2009, 0439 hrs IST NEW DELHI: A proposal to increase the price of natural gas produced from fields awarded to state-owned energy firms without inviting bids from $1.8 per million British thermal units (mBtu) to $2.6 per mBtu will be submitted to the Cabinet soon for its approval, joint adviser of finance in the oil ministry VLVSS Subba Rao said. The price, effective April 1, 2009, is linked to India's wholesale price index, he said here on Friday on the sidelines of a press conference organised by Oil India to promote its IPO. The government regulates price of natural gas produced from such fields (also called nominated blocks) before the introduction of the new exploration licensing policy (Nelp) in 1999. It regulates the price of over 70% of the administered price mechanism (APM) gas produced in the country from nominated blocks. Most of the nomination blocks are awarded to state-owned firms Oil & Natural Gas Corporation and Oil India. Higher gas prices will benefit both ONGC and Oil India. ONGC alone had lost about Rs 3,000 crore in 2008-09 for selling natural gas below production costs. ONGC produced 22.5 billion cubic metres of gas in the previous financial year which was 60% of country's total output.