Govt poses a 12% hike in natural gas price
Petroleum Secretary M S Srinivasan says since the cost of production of gas from the North-East is higher, the ministry has recommended a rise in the price of gas .
By PTI |
NEW DELHI: The petroleum ministry on Wednesday proposed a 12.5 per cent rise in the natural gas price sold by state-run Oil and Natural Gas Corp (ONGC) to power and fertilizer units as the cost of production of gas from the North-East is high.
The ministry has prepared a Cabinet note for raising price of gas produced by ONGC to Rs 3.6 per cubic metre from Rs 3.2 per cubic metres, Petroleum Secretary M S Srinivasan told reporters.
"We will circulate the note soon and expect a decision in a month's time," he said.
The Cabinet had in June 2006 raised ONGC gas price from Rs 2.85 to Rs 3.2 per cubic metre on an interim basis and asked Tariff Commission to look into the wellhead price of gas. The Tariff Commission recommended raising ONGC gas price to Rs 3.6 per cubic metre, whereas for Oil India it recommended Rs 4 per cubic metre.
Gas from the ONGC and OIL fields is sold at a government-fixed rate, which is much lower than the prices charged by private companies such as Reliance.
The ministry has prepared a Cabinet note for raising price of gas produced by ONGC to Rs 3.6 per cubic metre from Rs 3.2 per cubic metres, Petroleum Secretary M S Srinivasan told reporters.
"We will circulate the note soon and expect a decision in a month's time," he said.
The Cabinet had in June 2006 raised ONGC gas price from Rs 2.85 to Rs 3.2 per cubic metre on an interim basis and asked Tariff Commission to look into the wellhead price of gas. The Tariff Commission recommended raising ONGC gas price to Rs 3.6 per cubic metre, whereas for Oil India it recommended Rs 4 per cubic metre.
Gas from the ONGC and OIL fields is sold at a government-fixed rate, which is much lower than the prices charged by private companies such as Reliance.
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