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The petroleum ministry is 'examining' suggestions that Reliance Industries be asked to sell gas it has failed to deliver at the old price of $4.2 per million British thermal unit, the Lok Sabha was informed.
Within days of the cabinet approving a gas pricing formula that will double rates to $8.4 when implemented in April 2014, the finance ministry wrote to the petroleum counterpart advising it to "examine for appropriate action".
Minister of State for Petroleum and Natural Gas Panabaaka Lakshmi told Lok Sabha in a written reply to a question that the issues mentioned in the July 4 office memorandum of finance ministry "were under examination." The written reply in response was to be given on August 16, but since a holiday was declared on that day, the answers were tabled on Tuesday.
She said the finance ministry asked her ministry to examine if "there must be ceiling under the formula. It cannot be that gas producers will reap unlimited gains in case of an upswing in global prices; any upside has to be capped."
