India Defers Decision on Gas Price Hike

The Cabinet Committee on Economic Affairs (CCEA) postponed on Friday the discussion of proposal to hike natural gas prices as India’s oil minister M. Veerappa Moily was away on an official tour.

The minister has proposal to raise gas prices to $6.775 million British thermal unit (mmBtu) from current $4.2 mmBtu.

The gas price hike, while triggering investment in gas hunt in the country and the resultant production hike, is being opposed in some quarters as it would lead to a rise in cost of generating electricity and urea production, Asia News International (ANI) said in a report.

There is opposition to price hike, and there is speculation that the proposal may be referred to a ministerial panel for further deliberations, ANI said.