RIL cheers gas price hike, now wants free pricing

NEW DELHI: Reliance Industries has half-heartedly welcomed the government’s approval of the Rangarajan formula that doubles prices to $8.4 per unit from April. It said the decision is a good interim step that should be followed up with free pricing, which it claims is a contractual right.

“We welcome the adoption of Rangarajan Committee formula as a step in the right direction. However, gas sales have to be at competitive arms-length market prices,” RIL said in a statement on Saturday. “Accordingly, we hope the same momentum is maintained and as per the PSC [production sharing contract], gas markets are allowed to develop and transition to market price soon,” it said.

The government on Friday notified the new formula, which links gas prices to international benchmarks.