Presently Cabinet on OilPrices have maintained status quo on prices of domestically produced natural gas for three months. The deferment of gas price hike, originally due for April 1.
Dharmendra Pradhan,Oil Minister said,”Comprehensive discussions are required on this issue”
Gas price was set to double from the current $4.2/unit from April 1. The UPA government’s decision to double gas rates to $8.4 per unit was based on the Rangarajan formula. The Bharatiya Janata Party (BJP) had promised to review the formula during the election campaign.
A rise in gas price could have far reaching effect with prices of electricity generated from gas-fired power plants and many other types of fuels such as CNG and PNG (cooking gas).
Respite from inflationary pressure at a time when deficient monsoon and rising crude prices threaten to stoke cost of essential products.
The government clarified that there is no proposal from the petroleum ministry for any hike in LPG or kerosene prices.
