Gas price rise note reaches PM's office
Oil ministry officials finally began the process of increasing the gas price on September 29 by sending a note on pricing to the PMO.
"Expect the gas price revision to be discussed at the next CCEA (Cabinet Committee of Economic Affairs) meeting next week," says a ministry source. An ONGC source expects the gas price to be increased to $7/mmbtu from $4.20/mmbtu.
"I’m also hearing the gas price will be between $6.80/mmbtu and $7/mmbtu," says a power sector source. A Reliance source believes the government will take a final decision only after Delhi elections.
"Aam Aadmi Party chief Arvind Kejriwal is looking for an opportunity to target (PM) Modi,” he says. “A gas price hike will be the perfect chance for Kejriwal to woo the middle class in the elections.
Modi doesn’t want to take chances.” India’s domestic gas price was earlier meant to be revised from April 1, 2014 following the Rangarajan committee report.