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India has set up a panel to review the pricing formula for locally produced gas to ensure "fair price to the end consumer", according to a government order seen by Reuters, a move aimed at lowering inflation and boosting use of the cleaner fuel.

India links local gas prices to a formula tied to global benchmarks, including Henry Hub, Alberta gas, NBP and Russian gas with a lag of one quarter.

Local gas prices are at a record high and are expected to rise further due to a sharp increase in global gas prices triggered by the Ukraine-Russia conflict.

The panel has to submit its report by end of this month, it said.

A government source said the panel's recommendations will not be reflected in the next six-month revision of local gas prices from October, as cabinet approval is required for implementation.

The committee, headed by energy expert Kirit Parikh, will include members from the fertiliser ministry, gas producers and buyers.