No revisit on gas price hike decision: Moily

No revisit on gas price hike decision: Moily
Highlights

Amidst Finance Ministry raising prospects of forcing Reliance Industries to sell gas at old price of $4.2,...

Amidst Finance Ministry raising prospects of forcing Reliance Industries to sell gas at old price of $4.2, Oil Minister M Veerapa Moily on Thursday said there was no rethinking in the government on the decision to double gas rates from April 1, 2014. "There is no thinking on part of the government for any review or reconsideration of the decision of the CCEA. Let me make it very clear. There is no confusion, there is no vagueness. And I don't think there is scope for any interpretation whatsoever," he said.

Finance Ministry wrote to Oil Ministry asking it to take appropriate action on suggestions proposed in media reports like putting a cap up to which rates can be raised and RIL being forced to the quantity it had committed but failed to deliver in past three years at old rate of $4.2.

However, responding to letter Moily said, "The Office Memorandum dated July 4 from the Department of Expenditure, Ministry of Finance... has enclosed two editorials of the newspapers and illustrated some of the issues in these editorials. That cannot be taken as objective opinion of Ministry of Finance. It cannot (also) be considered as query raised by Ministry of Finance."

Ruling out capping increase in rates, the Minister said, "The CCEA decision stands. There is no change. And government, not just Ministry of Petroleum and Natural Gas, is not contemplating any changes in it." CCEA had on June 27 approved pricing of domestic gas at an average of cost of imported LNG into India and international hub rates. The price of gas when this formula comes into effect on April 1 could come to about $8.4 per mmBtu.

New gas price only $6.8/mmBtu New Delhi (Agencies): In a significant revelation, the petroleum minister Veerappa Moily said that new gas price would be $6.8 per mmBtu and not $8.4 per mmBtu as was widely understood.

"The new gas price that will be applicable is $6.8 per mmBtu and not $8.4, I do not know where this figure is coming from," he said on Thursday.

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