CPI(M) questions govt on RIL gas price

New Delhi, Sept 4 (UNI) Jumping into the RIL's gas pricing row, CPI(M) today asked the government to reject the 'artificially inflated' price proposed by the company.

''Pricing of natural resources like gas should not be left to the market forces,'' the CPI(M) Politburo said and urged the government to decide on a price based on actual production costs plus reasonable profit.

In addition, it sought the intervention of the Empowered Group of Ministers on the issue.

''Even if the price quoted in 2004 through competitive bidding is indexed to the present, it can no way allow an 85 per cent hike as the RIL has done while fixing the price at 4.33 dollar per million British thermal unit (mBtu). The RIL proposition is thus an artificially inflated one and should be rejected,'' it said in a statement.

Referring to RIL's proposal to sell gas at 4.33 dollar per mBtu, it said the present price formulation was in no way consistent with the price of 2.34 dollar quoted by the company in 2004 for supplying gas to NTPC.

UNI