Prashant Bhushan attacks Centre over proposed gas price hike

Aam Aadmi Party (AAP) leader Prashant Bhushan on Tuesday attacked the BJP-led NDA Government over its proposed plan to hike gas prices, and also wondered if this hike was done in order to benefit Reliance.

"On the gas price hike, there is pressure from Ambani, as they will mainly benefit from this process. The way Modi was using Reliance's plane during his campaigning went on to create an impression that they (Reliance) have spent a huge sum of money behind Modi. The main question that the government is facing is whether it will succumb to Ambani's pressure," Bhushan said.

"Various committees have shown that the price hike is not in the public interest. The CAG report has also shown illegalities by Reliance. Legally, the fields should be taken back from Reliance. This will greatly increase the prices for one company's profit. It seems that this government will also follow in UPA's crony capitalism," he added.

A decision on increasing natural gas prices is reportedly expected in the next few days, even as meetings between Petroleum and Natural Gas Minister Dharmendra Pradhan, Finance Minister Arun Jaitley and top officials in the Prime Minister's Office (PMO) continued on Monday.

The new government is looking at tweaking the United Progressive Alliance Government's approved price formula --- known as the Rangarajan formula--- that recommended raising prices to $8.4 a unit from the existing $4.2. The new price based on the formula could not be implemented by the previous government because of the model code of conduct.