Sixty pc hike in natural gas prices for Gujarat industries: Deora

Surat, May 7 (UNI) The Union Petroleum Ministry is willing to discuss hike in R-Liquified Natural Gas (R-LNG) prices by Gas Authority of India Ltd (GAIL) with Gujarat Government, as it had reacted sharply to the Union Government's decision to fix the pool price for imported gas only.

Talking to mediapersons after inspecting the work of Dahej-Panvel-Dabhol pipeline project, Petroleum Minister Murli Deora said the imported natural gas will cost around 60 per cent more to the existing consumers of R-LNG as the Government has decided to pool the prices.

He said the decision was taken so that new consumers (mainly Dabhol Power Company) will also get the natural gas at much lower price than the prevailing market rate.

GAIL Chairman U D Choubey said as per the new formula, new rates of the imported gas will be applicable from the day, when the new gas will be pumped into the system. The new gas is expected to pumped in the system towards the end of June.

A senior official defended the Government's decision of pooling natural gas prices, saying that the decision was taken so that electricity produced by Dabhol should be cheaper.

The Dabhol Power Company is expected to commence operation from June-end and will produce 1,400 mega watt electricity.

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