Cabinet Defers its Decision of Gas Price Hike for 3 Months

New Delhi, 25 June-2014, NDTV: The Narendra Modi government on Wednesday decided to defer its decision on hiking prices of domestically produced gas.

Cabinet Defers its Decision of Gas Price Hike for 3 Months

Cabinet Defers its Decision of Gas Price Hike for 3 Months

State-run explorers such as ONGC and billionaire Mukesh Ambani-controlled Reliance Industries would have benefitted had the Cabinet allowed a hike today. Their stocks are likely to come under pressure tomorrow when the markets open.

Oil Minister Dharmendra Pradhan is addressing the press after a meeting of the Cabinet.

Following are the highlights from the address:

  • Prices of domestically produced gas to stay at the current $4.2 rate for the next three months.
  • Wider discussion needed on gas price hike
  • New government must be given time to take a call on gas pricing
  • Gas prices require extensive consultation
  • All stakeholders need to be consulted on gas prices
  • To review gas price hike afresh in the interest of the common man
  • No proposal from the petroleum ministry’s side for any hike in LPG or kerosene prices
  • The Cabinet also decided to hike the minimum support price for all kharif crops effective October 1, Law Minister Ravi Shankar Prasad said.