Government of India defers gas price hike by three months

The Cabinet Committee on Economic Affairs (CCEA) on Wednesday deferred a decision on increase in gas price by three months and decided to take a decision after comprehensive consultation on this matter with the stakeholders.

The UPA Government had decided on January 10 of this year to announce natural gas priceline guide, but on account of model code of conduct the implementation was postponed. The cabinet has now decided that on this entire issue and based on the guidelines there is need for a comprehensive consultation. The Government feels that It is important to consult with all the stakeholders and safeguard the interests of the common man.

"Keeping that in mind CCEA Cabinet has decided to defer the issue of gas pricing for 3 months," Oil Minister Dharmendra Pradhan said at a press conference here today .

On being asked as to who is going to review the oil price, Ravishankar Prasad said, "The mechanism of that consultation must be left to the wisdom of the ministry to find a whole structure."

On whether the Government was going to increase LPG by rupees five and rupees one on kerosene, Oil Minister said, "There is no proposal infront of the government and neither the government is thinking on that lines."

The news will come as a big relief for the common man who has been battling with high prices and inflation in the country as the price of gas would have come into effect from July 1.

The previous government led by the Congress party could not raise prices from April 1 as planned following the Election Commission's request to defer the move until the national elections concluded.

Gas prices would have doubled to more than $8 per million British thermal unit (mmbtu) from April 1 if the complex formula proposed by a panel was implemented. The panel also suggested a quarterly review of the local gas prices.