Govt to consider proposal to raise gas prices
The government is likely to consider next month a proposal to raise subsidised natural gas prices for power and fertilizer units by 12.5 per cent, Petroleum Secretary M S Srinivasan said on Monday.
By PTI |
NEW DELHI: The government is likely to consider next month a proposal to raise subsidised natural gas prices for power and fertilizer units by 12.5 per cent, Petroleum Secretary M S Srinivasan said on Monday.
"Pending a review by Tariff Commission, the Cabinet Committee on Economic Affairs (CCEA) had last May approved an ad-hoc increase in natural gas prices to Rs 3,200 per thousand standard cubic meters per day from Rs 2,850 per thousand standard cubic meters per day. We have now received the report of Tariff Commission and will approach the Cabinet, possibly next month," he told reporters here.
The Tariff Commission has proposed raising fuel prices to Rs 3,600 per thousand cubic meters per day.
Gas prices for consumers in all other sectors are linked to market price of around 3.86 dollars per million British thermal unit.
Transport sector, industries in Agra/Ferozabad and small consumers (using less than 0.05 million standard cubic meters per day) had been spared from any hike for 3-5 years, he said.
CCEA had in May 2006 cleared the ad-hoc raise and referred the matter of fixing the producer price of natural gas to the Traffic Commission, he said.
Natural gas price for the north-east sector would be 60 per cent of the new price.
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