Gas panel submits report, recommends less than disputed price

The panel has reportedly recommended a price lower that the Rangarajan panel's $8.4 per unit

A Committee of Secretaries (CoS) looking at the new gas pricing guidelines has submitted its report to the petroleum ministry. The exact recommendations of the panel on pricing have been kept under wraps.

However, official sources said it has suggested a price less than what the Rangarajan panel had recommended — $8.4 per unit. “The report has been signed and submitted. Recommendations on pricing have not been disclosed,” said an official close to the development.

Petroleum minister Dharmendra Pradhan will now look at the report before it is put before the Cabinet. The committee comprises secretaries of the power ministry, fertiliser ministry and expenditure department apart from the petroleum ministry’s additional secretary as member-secretary.

The panel was constituted last month to review gas pricing guidelines of January 2014.

As per the guidelines, based on the recommendations of an earlier panel, headed by former chairman of Prime Minister’s Economic Advisory Council C Rangarajan, new doubled gas prices were to come into effect beginning April. But the implementation was postponed owing to the general elections in May. The government later deferred the announcement of the new price till September-end. However, a final decision on pricing might be delayed further due to Assembly polls in Maharashtra and Haryana in mid-October, sources said.

Every dollar increase in gas price would raise urea production cost by Rs 1,370 per tonne, electricity tariff by 45 paise per unit, compressed natural gas prices by Rs 2.8 per kg and piped natural gas rates by Rs 1.8 per standard cubic metre.