Earlier, the government announced gas prices to nearly double to $8.42/mmbtu from $4.2/mmbtu effective April '14.
Petroleum Minister Veerappa Moily on Friday said the new gas price is $6.8 per mmbtu. The statement comes after being criticised in all quarters on its recent decision to double gas prices. Reports said the Finance Ministry wants Oil ministry to put a cap on gas prices. Fin Min also wants Reliance Industries to deliver the shortfall in gas promised to the government at old rates of $4.2mmbtu.
The finance ministry in a note to oil ministry said it wants Reliance Industry to pay up as production goes up. RIL will be the biggest beneficiary of the gas price hike. RIL stock is trading at Rs. 868 up Rs. 12 or 1.4%.
Earlier, the government announced gas prices to nearly double to $8.42/mmbtu from $4.2/mmbtu effective April '14, as the government seeks to move the industry from a fixed-price regime to one which is driven by market prices.
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