What's Behind the Gas Price Formula

UNLIKE the price of crude oil, which is agreed by the Organization of Oil Exporting Countries (OPEC), the price of gas is determined through a formula. So for each contract, there's one formula. There are several reasons why a formula is used to set gas prices. The main one is that because gas is a commodity, long-term gas contracts need to be protected from fluctuations that are too large.

This formula refers to the market price of crude oil

Subscribe to continue reading.
We craft news with stories.

For the benefits of subscribing to Digital Tempo, See More

The Best Choice

Rp 54.945/Month

Active for 12 Months, Rp 659.340

• *You Save -Rp 102.000
• *Guaranteed update of up to 52 Editions of Tempo Magazine

Subscribe

Rp 64.380/Month

Active Every Month Cancel Anytime

• *Free for the first month if using a Credit Card

Subscribe

See Other Packages

Already a Subscribed? Log in here
To receive daily news by Email, Sign up for Tempo ID.