Govt may hike controlled gas price 12.5% in July

Govt may hike controlled gas price 12.5% in July
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First Published: Tue, Jun 12 2007. 12 35 PM IST
Updated: Tue, Jun 12 2007. 12 35 PM IST
New Delhi: India may raise prices of natural gas sold under administered pricing mechanism by 12.5% to Rs3,600 per thousand cubic metres for power and fertiliser units, Oil Secretary M.S.Srinivasan said on 11 June.
Administered gas to power and fertilser units is currently sold at a government-fixed lower rate of Rs3,200 per thousand cubic metres.
“We asked for the Tariff Commission’s recommendation on pricing. Tariff Commission has given its report, we will go to the cabinet next month on pricing of administerd gas,” Srinivasan told reporters.
The federal government fixes the prices of around 40 million cubic metres of gas a day supplied by Oil and Natural Gas Corp. and Oil India Ltd to power, fertilser and other customers.
The administered prices apply to gas produced from the blocks awarded to state-run oil companies on nomination basis before the introduction competitive bidding.
Gas supply from these blocks is depleting and is expected to reach 29.6 million standard cubic metres a day by 2009-10.
Gas from the blocks awarded through licensing rounds is sold through negotiations between producers and buyers.
India last July raised the prices of administered gas for non-power and non-fertilser users by 20% to Rs3,840 per thousand cubic metres.
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First Published: Tue, Jun 12 2007. 12 35 PM IST