Deals with a pricing problem in the public sector. The pricing of natural gas, which was obtained as a byproduct in some of the oilfields of the Oil and Natural Gas Commission, became a controversial issue because of the monopolistic position of the Commission. An arbitrator was appointed by the Government of India to propose an award on the price, taking into account the views of ONGC and the regional interests of the potential users of gas. After analyzing the evidence provided by the two parties, the student is expected to give his award. Adequate data on costs and demand are given in the case so that the student can estimate the price of natural gas if ONGC is to earn the rate of return suggested by the government, taking into account its total product mix. Students may also be divided into different groups and each group may be asked to come up with an award of its own.