Home » Govt to consider views of fertiliser, power ministry on gas pricing

Govt to consider views of fertiliser, power ministry on gas pricing

Govt to consider views of fertiliser, power ministry on gas pricing
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Union Petroleum Minister Veerappa Moily is quoted as saying that the government would arrive at a consensus on the pricing of natural gas after considering the reservations of the power and fertiliser ministries.

Moily has reportedly said his ministry has not yet approved $8-$8.5 per mmbtu as the new uniform gas price, as suggested by the committee headed by C Rangarajan.

The power and fertiliser ministries oppose any price above $5 as they feel it to be unviable, given its effect on power tariffs and the subsidies provided to the fertiliser sector.

The minister is also quoted as saying that the government was not reviewing its decision to deregulate partially diesel prices, given that oil-marketing companies did not raise diesel prices last month.

He also informed that the policy on shale gas was ready and the ministry would take it to the cabinet soon.

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