Modi meets Pradhan, Jaitley to discuss oil prices

Prime Minister Narendra Modi met Finance Minister Arun Jaitley, Oil Minister Dharmendra Pradhan and Oil Secretary on Sunday to take a decision on gas prices.

The leaders are reported to have discussed the Rangarajan Formula on gas prices. The new government may consider tweaking it. However, it is too early to say if the NDA government would constitute a new committee on gas prices.

The Oil Minister and Secretary have briefed Modi and Jaitley on all possible legal options and are expecting to have a final say by the end of this week.

The UPA government had accepted the Rangarajan Committee which proposed to price all domestically produced natural gas. In this regard, gas prices were slated to be increased to $ 8.4 per million British thermal unit from April 1, 2014.

The Rangarajan formula uses long-term and spot liquid gas (LNG) import contracts as well as international trading benchmarks to arrive at a competitive price for India.

 

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