Govt to notify gas pricing policy; to partially roll back price hike for bulk diesel

The Cabinet Committee on Economic Affairs (CCEA) has given the go-ahead for implementing the new gas pricing mechanism, as suggested by a panel headed by the chief of the prime minister's economic advisory committee (PMEAC) C Rangarajan and the decision will be announced before Sunday.

''It will come before Sunday. It is ready, we are just looking at the fine print,'' petroleum secretary Vivek Rae told media persons on the sidelines of a CII Business Partners conference.

The new pricing policy will double the price of natural gas produced in the country, from $4.2 per million standard cubic metres (mmscm) to around $8.6 per mmscm.

He also said the petroleum ministry is considering a partial rollback of bulk diesel prices as sales have dropped significantly.

The government had, in January last, decided on market rates for bulk consumers of diesel and has since been raising the price of subsidised diesel in small amounts every month in an effort to cut its rising subsidies.

"We are circulating the Kirit Parikh report for inter-ministerial consultation," Rae said.