There was no need for referring gas price hike to EC: FM

India Infoline News Service | Mumbai |

“We're importing one unit of gas at a much higher price that the approximately $8 we have indicated from 1 April, 2014," the finance minister said

Finance Minister P Chidambaram on Monday said that the new price approved by the Cabinet for domestically produced natural gas is the right decision. The Cabinet has taken into account all pros and cons, including the reservations expressed by different ministries. The Cabinet's decision is the right decision.
According to Chidambaram, there was no case for referring Cabinet decision to double gas price to the Election Commission (EC) and it was done out of "abundant caution".
On Monday, addressing mediapersons at the Congress headquarters in New Delhi, Chidambaram focused on his achievements of the last 20 months.
When asked if it was right to seek EC's nod over the Cabinet decision on gas price hike, Chidambaram said, “There was no obligation on the part of Ministry of Petroleum and Natural Gas to refer this issue to the EC in the first place."
Last week, the EC asked the UPA government to defer notifying doubling of price of the fuel produced by companies such as Reliance Industries till general elections are completed.
A new pricing regime was to be implemented from next month for all private and public sector natural gas producers under which rates were to rise to $8.3 next month from current $4.2 per million British thermal units.
“We're importing one unit of gas at a much higher price that the approximately $8 we have indicated from 1 April, 2014," the finance minister said.
 

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