Public sector undertakings under the Petroleum Ministry are doing exactly what the Ambani brothers have done with natural gas from Block D6 — fixing price and apportioning gas without the Ministry’s consent.

The Petroleum Ministry has questioned ONGC’s authority to independently price and market gas it will produce from its C Series field to GAIL India Ltd, and has asked ONGC to put the agreement on hold until it gives permission.

“Comments should be furnished as to how the gas is proposed to be sold from C Series without sending the requisite information and obtaining approval of this ministry on pricing issue. Further, it is reiterated that ONGC should not start marketing gas from its C Series till ministry issues directions in the matter,” says a Ministry letter dated July 23.

The C field — off the Mumbai coast — was given to exploration firm ONGC on nomination (without bidding) and, as per rules, gas from a nominated field is to be sold to firms selected by the government at administered price of $1.8 per million British thermal unit. However, marketing firm GAIL said last week that it was buying the gas from ONGC at $5.5 per mBtu, a price higher than $4.20 per mBtu fixed by the government for gas from D6 that was bid and whose production sharing contract (PSC) provides pricing freedom.

Restrictions on pricing and marketing of gas from nominated fields had been brought to ONGC’s notice first in May with the ministry seeking clarification whether nominee ONGC could market the gas at any price to anyone it deemed fit.

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