The new formula for the pricing of natural gas produced in the country is an improvement on the Rangarajan formula. It corrects many of the computational flaws of the much-criticised approach of the previous government. However, there remain faults and there are conceptual flaws as well in the new formula, which if corrected should take the well-head price of gas to no more than $4.20 per million British thermal unit, rather than the price of $5.05 that has now been notified.
