Energy prices need to gradually align with international market: BK Chaturvedi

NEW DELHI: Describing India as a highly price sensitive market, a senior Planning Commission official today said that energy prices need to be gradually aligned with the international market and that can not be done over night.

Speaking at the India Energy Congress here, Planning Commission member B K Chaturvedi said that there should be a fair pricing system for oil, gas and coal.

"India is a highly price sensitive market... we should ensure that input cost does not become so high that output price becomes highly uncompetitive," he said.

The comments come against the back drop of concerns over high international coal prices that could result in higher power tariff. Coal is a major fuel for electricity generation in the country.

Chaturvedi said that pricing of coal is a major issue for the power sector.

"I can not really say whether there is great convergence between power producers and Coal India on pricing," he added.

Noting that fuel has become a major issue in the country, he said there should be a careful approach in fixing the energy prices.

According to him, nearly about 80 per cent of oil needs, 30-40 per cent of gas requirement and about 25 per cent of coal needs are met through imports.