Decision on gas pricing put off again

The decision to defer the revision of gas prices by another 45 days was taken at a meeting of the Union Cabinet headed by Prime Minister Narendra Modi.

The government on Wednesday postponed the decision on revising gas prices till November 15.

The decision to defer the revision of gas prices by another 45 days was taken at a meeting of the Union Cabinet headed by Prime Minister Narendra Modi. The decision was conveyed by Law Minister Ravi Shankar Prasad.

Earlier, the NDA government had deferred the implementation of the Rangarajan formula, approved by the previous UPA-regime, till September 30. The Rangarajan committee recommendations would have led to a doubling of gas prices to USD 8.4 per million per British thermal unit.

Last year, the UPA government had approved pricing suggested by the C. Rangarajan panel, re-confirming it in December 2013 with certain conditions for Reliance Industries' eastern offshore KG-D6 block.

The Rangarajan formula, however, could not come into effect due to the general elections being announced and the EC asking the government to defer it till the end of polls.