The government will by September end announce a new gas price formula
Picture for representational purpose
New Delhi: The government will by September end announce a new gas price formula keeping the interest of investors as well as consumers in mind, oil minister Dharmendra Pradhan said on Wednesday.
Mr Pradhan, however, said no committee has been constituted to suggest an alternative to the Rangarajan formula approved by the previous UPA government that would have doubled the price of gas to $8.4 per million British thermal unit.
Replying to questions in RS, Mr Pradhan said the government decided to review the pricing formula keeping in mind public interest and recommendations of the PSC. New formula will be announced by September 30 and till then $4.2 per mmBtu price will continue.
He said the Parliamentary Standing Committees on Finance as well as on Petroleum had called for a review of the formula suggested by the panel headed by Dr C Rangarajan saying gas price should have some linkage with the cost of production.
The Rangarajan formula was to be implemented from April 1 but was deferred by three months as general elections were announced. The NDA government on June 25 postponed its implementation by a further three months pending a comprehensive review.
( Source : PTI )
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