Govt seeks proposals to cushion natural gas price blow

To neutralize the impact of rising natural gas prices on the cost of power and fertilizers and indirectly, food prices, the government has asked the power and fertilisers ministries to submit proposals to help in this stiff situation.

Minister of Petroleum and natural gas, Veerappa Moily said that his ministry along with finance ministry will support the power and fertiliser ministries towards minimizing the impact of the hike on end-users in the two sectors.

"The administrative ministries of power and finance have been asked to work out the modalities and submit them to us," Moily added.

Moreover, Finance Minister, P. Chidambaram has also hinted supporting core sector industries such as power and fertilisers.

He further said, "At the moment we are only fixing the price of gas payable to producers... a higher gas price will indeed have impact on the consumer, but those prices are not being fixed today. That can still be decided between now and April 1."

Read more about: natural gas
Story first published: Monday, July 1, 2013, 12:30 [IST]
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