The Oil Ministry's proposal to hike natural gas prices is expected to be considered by the Cabinet next week. As suggested by a panel headed by Prime Minister's economic advisor, C Rangarajan, the Oil Ministry had proposed for an immediate hike of 60 per cent in natural gas prices.
The ministries of Finance, Fertilizer and Power have already sent their comments on the Oil Ministry's revised note.
The government-appointed committee had suggested pricing domestic gas at an average of rates at three key international hubs incuding US Henry Hub, National Balancing Point of UK and well-head prices of supplies into Japan, and the actual cost at which India imports LNG.
As per the Oil Ministry's proposed formula, the gas prices would be close to USD 12 in 2014-15 and USD 14 in the next year.