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Govt likely to put off gas price revision until assembly polls
New Delhi, Oct 14: Government is likely to put off the proposal to hike natural gas prices by Rs 350 to Rs 3200 per thousand cubic metres until assembly polls in five states were over, as the move would necessitate an increase in price of CNG supplied to automobiles in Delhi.
New Delhi, Oct 14: Government is likely to put off
the proposal to hike natural gas prices by Rs 350 to Rs 3200
per thousand cubic metres until assembly polls in five states
were over, as the move would necessitate an increase in price
of CNG supplied to automobiles in Delhi.
"The Group of Ministers' recommendation to raise natural
gas prices from Rs 2850 to Rs 3200 per tcm
is listed for discussion at tomorrow's cabinet meeting. But
with polls in key states including Delhi round the corner, a
decision may be postponed without even a discussion," highly
placed sources said.
If the cabinet were to go by GoM recommendation, CNG prices in Delhi would go up by close to Rs 2 per kg besides also requiring revision in domestic cooking gas prices.
"While the cabinet had last month decided to freeze LPG and kerosene prices for a year (beyond next general election) despite rising cost of crude oil (raw material), CNG prices would have had to be increased immediately," they said.
Besides crude oil, LPG is also produced from natural gas. Natural gas piped from western offshore is compressed and sold as CNG to automobiles in Delhi and Mumbai and also piped for domestic cooking.
The GoM had also suggested increasing HBJ gas pipeline (which transports gas from western offshore to consumption centres in north) transportation charges to Rs 1160 per tcm per day from Rs 1150 per tcm per day.
Bureau Report
If the cabinet were to go by GoM recommendation, CNG prices in Delhi would go up by close to Rs 2 per kg besides also requiring revision in domestic cooking gas prices.
"While the cabinet had last month decided to freeze LPG and kerosene prices for a year (beyond next general election) despite rising cost of crude oil (raw material), CNG prices would have had to be increased immediately," they said.
Besides crude oil, LPG is also produced from natural gas. Natural gas piped from western offshore is compressed and sold as CNG to automobiles in Delhi and Mumbai and also piped for domestic cooking.
The GoM had also suggested increasing HBJ gas pipeline (which transports gas from western offshore to consumption centres in north) transportation charges to Rs 1160 per tcm per day from Rs 1150 per tcm per day.
Bureau Report