The final agreement on the proposed $7 billion Iran-Pakistan-India gas pipeline is likely to be signed by June this year, Petroleum Minister Murli Deora has said.

Besides other issues, lack of pact between India and Pakistan on the price of the gas led to the delay in the project.

Tehran has now changed the price formula from 10 per cent of the ruling Brent crude oil price plus $1.2 per million British thermal unit (mBtu) fixed cost to 6.3 per cent of the Japanese crude cocktail plus $1.15 per mBtu.

The $60 per barrel crude oil price and the cost of gas at the Iran-Pakistan border, the point at which the pricing formula is applied, translates into $4.93 per mBtu, according to the new price formula proposed.