No gas price hike for now

New Delhi: The Cabinet Committee on Economic Affairs on Wednesday postponed a decision on hiking the price of natural gas produced from domestic oilfields for three months. The CCEA felt there was a need for “comprehensive discussions” on the issue. The government also said it was not considering raising LPG and kerosene prices.

The government is treading cautiously after its steep hike in railway fares. This is because the BJP will face Assembly polls in the key states of Maharashtra, Haryana and perhaps Delhi in the coming months.

The price of domestic natural gas will, hence, remain unchanged till the end of September. This decision was a setback for the Mukesh Ambani-led Reliance Industries, which would have be-nefited from an upward revision in natural gas prices.

“It was decided that consultations will be held with all stakeholders and that it was important to keep the public interest in mind,” said oil minister Dharmendra Pradhan.
Finance minister Arun Jaitley said a review mechanism will have to be decided by the PMO and the oil ministry.