Cabinet defers gas pricing decision

The Cabinet Committee on Economic Affairs today deferred taking any decision on domestically produced natural gas pricing.

According to sources, the issue is likely to be taken up next week.

Though no official reason was available, the reasons doing the rounds was that Minister for Petroleum & Natural Gas M. Veerappa Moily was not in town.

Business Line had reported that though the matter was listed in the agenda of the CCEA meeting, whether it will be taken up remains to be seen, as the Minister was not in town.

Also, one of the offtakers, the Power Ministry, continues to oppose the proposed domestically produced gas price of $6.77/mmBtu by the Petroleum Ministry.

The Power Ministry was saying that any price beyond $5/mmBtu was unviable for the sector. It has maintained its position on the same. The Fertiliser Ministry had also expressed its reservations.