At USD 110 per barrel oil price, gas will cost USD 14.23 per mmBtu.
Sources said the company has also proposed to price gas it plans to produce from coal seams, called coal-bed methane (CBM), from Sohagpur blocks in Madhya Pradesh according to the same formula.
Its CBM pricing formula as well as Essar Oil's demand for USD 4.2 per mmBtu price of CBM from its Raniganj block in West Bengal had been referred Rangarajan for review.
The EGoM had in 2007 fixed USD 4.2 per mmBtu price of KG-D6 gas for first five years of production. RIL began KG-D6 gas production in April 2009.
The formula proposed by RIL for sale of gas from April 1, 2014 is the same at which Petronet LNG Ltd, the nation's largest liquefied natural gas importer, buys 7.5 million tonnes per annum (30 million standard cubic metres per day) of LNG from RasGas of Qatar.
Sources said while the six-member Rangarajan Committee is looking into the shape of future Production Sharing Contracts (PSC) as well as structure of gas pricing, Rangarajan as a one-man panel has been asked to look into the CBM pricing.