Mint Explainer: Why a gas price cap is only half the battle for India
- Supply snags will continue to cast a shadow over the country.
After the windfall gains, comes the price ceiling. The Kirit Parikh panel appointed by the government has recommended capping the price of natural gas produced in the country until 2027, when it expects less supply bottlenecks and more price stability. Given that higher gas prices hurt India's fertilizer, power and city gas sectors, capping them may seem to be fair; however, the bigger task before the government will be to secure supplies at a time gas-starved Europe sucks in global supplies to meet its winter demand as Russia ends supplies.
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