Prime Minister’s Office seeks report on gas pricing

New Delhi: The Prime Minister’s Office (PMO) has sought a status report from the oil ministry on issues around the implementation of the Cabinet decision to almost double natural gas rates.The Cabinet Committee on Economic Affairs (CCEA) had first on June 27, 2013, and then on December 19, 2013, decided to price all domestically produced natural gas, including unconventional fuels such as coal-bed methane and shale gas, at an average of international hub rates and the cost of importing LNG.

 

The new price of $8.3 per million British thermal units was to be effective from April 1 but the Election Commission asked the government to defer the implementation until voting in the Lok Sabha polls ends. The new rate was applicable for domestic producers.