Cabinet Likely to Discuss Gas Price Hike Today

Oil minister Dharmendra Pradhan is likely to attend a Cabinet meeting on Wednesday, amid speculation that the government India could soon raise gas prices. Mr Pradhan is not a member of the cabinet committee, but can attend the meeting as a special invitee.. The previous UPA government did not raise prices of domestically produced natural gas from April 1 as planned, following the Election Commission's request to defer the move until the conclusion of elections in May. The UPA government had notified the Rangarajan panel formula which would have increased the gas prices to $8.4 per unit from $4.2 currently.. According to estimates, every dollar increase in gas price will lead to a 45 paise per unit increase in electricity tariff. CNG prices would increase by a minimum Rs 2.81 per kg, while PNG prices will go up by Rs 1.89 per unit for every dollar rise in gas prices. Urea prices will go up by Rs 1,370 per ton.. Besides gas price hike, the Cabinet is also likely to discuss hikes in LPG and kerosene prices, sources said. There is speculation that the government may allow small monthly hike in LPG and kerosene prices, similar to the current pricing mechanism in diesel.. Currently, oil marketing companies are losing Rs 33/litre on kerosene and Rs 433 per LPG cylinder by selling them below market prices.. ONGC and Reliance Industries, both of which could be beneficiaries of gas price hike, traded weak today, down 1.2 per cent and 0.7 per cent. (With Agency Inputs)

Cabinet Likely to Discuss Gas Price Hike Today

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