No stopping gas price hike: Veerappa Moily

NEW DELHI: Petroleum and natural gas minister M Veerappa Moily said on Friday that the government will not go back on its decision to raise gas prices from April 1. Moily also called “unconstitutional” a Delhi government move to file police complaint against present and past functionaries of the Centre.

“Where is the question of stalling or stopping anything?” Moily told reporters on the sidelines of an industry event. He said the government followed rules and regulations while revising gas prices.

The decision was taken after the Cabinet twice considered each contentious matter carefully before approving the new pricing formula, which was proposed by the Rangarajan Committee, he said.

In December, the Cabinet had accepted the Rangarajan Committee’s formula that will almost double the price of natural gas from $4.20 per unit.

“He (Prime Minister’s Economic Advisory Council Chairman C Rangarajan) is an eminent economist and he has gone through the mills. And I have not changed even a word or a full stop or a comma from the recommendation. So, where is the question of Moily's verdict? The committee was appointed by Mr Jaipal Reddy. I have not appointed the committee to suit my needs,” Moily said.

Prime minister Manmohan Singh, on the request of Moily’s predecessor Reddy, had constituted the committee on May 31, 2012.

Moily also said the FIR filed by Delhi government’s Anti-Corruption Bureau on the behest of chief minister Arvind Kejriwal was “unconstitutional and against federal principles. It is very clear they are exercising power, which is extraconstitutional or contrary to constitutional provisions.”

State-run ONGC and other companies will be entitled for new prices from April 1 without any conditions, oil ministry officials said.