Indian gas prices set to rise

摘要

The Indian government has decided to change its regulated gas pricing arrangements from April 2014 in a move that is expected to result in a steep rise in power sector gas prices. The Cabinet Committee for Economic Affairs has approved an expert panel report that recommended that gas pricing should be based on international prices. The highest price for domestic gas is currently well below half the price of imported gas. The CCEA decision came after several months of government indecision in the face of opposition to gas price increases from within the bureaucracy, from the main gas consumer groups and from some political parties. The opponents include the electricity and fertilizer ministries, which represent the biggest gas consuming sectors, while campaigning by communist parties, who demanded that the issue be debated in parliament, complicated the matter.