Import lobby is opposing the proposal to link the domestic price of natural gas to the market price and thereby liberalise the pricing of the fuel, Petroleum minister M Veerappa Moily said recently.
However, he said he was clueless about whether the opposition is from the crude oil import lobby or the liquid gas import lobby.
The lobby does not want the government to take any step that would reduce the import of crude oil or natural gas into the country, the oil minister has reportedly said in a media.
The government wants to liberalise the pricing regime for natural gas in line with the recommendation of the Rangarajan committee in order to incentivse domestic production of gas. Encouraging domestic production through pricing reform would reduce the dependence of the country on import. Therefore, the import lobby is opposing the proposed change in the pricing regime, the minister said.
India is a wealthy country full of natural resources that can help cut our $160 billion oil import bill. India must exploit the resources for the welfare of our people.
Depending on import makes the country vulnerable to the volatility in the global crude oil price. 1 per cent of rupee depreciation costs Rs 9,000 crore in terms of oil subsidy, the minister has reportedly said.
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