India Again Postpones Decision on Gas Price Hike

Indian government on Wednesday postponed a decision to revise natural gas prices by another 45 days to 15 November.

The Modi led government had put off implementation of the previous regime approved Rangarajan formula, which would have at least doubled rates to $8.4 per million British thermal unit, till 30 September for holding wider consultations, Press Trust of India reported.

The Cabinet headed by Prime Minister Narendra Modi deferred a decision on the issue till 15 November, law and telecom minister Ravi Shankar Prasad told reporters in New Delhi.

The previous government had approved pricing formula suggested by a panel headed by C Rangarajan. The new price regime was supposed to originally come into effect from April 1 but was deferred because of national elections in May.

The price of gas, according to this formula, comes to around $8.3 per million British thermal unit for April-June quarter, almost double the current price of $4.2.