ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
-A A +A
Subsidising Producers’ Profits?

Natural Gas Price Hike

The government, on the basis of a very questionable methodology, has doubled the price payable to natural gas producers. Through this decision as with a similar one in 2009, the government has compromised economic reasoning at the altar of crony capitalism and political expediency. In the absence of a homogeneous gas market which throws up a market price, the only option should have been for an independent, professional and quasi-judicial regulator to compute effi ciency-based costs and determine the price on the basis of a reasonable return. Instead, a Group of Ministers has taken a decision which could transfer up to Rs 26,000 crore a year to producers, especially one private company.

Subscribers please login to access full text of the article.

New 3 Month Subscription
to Digital Archives at

826for India

$50for overseas users

Get instant access to the complete EPW archives

Subscribe now


(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top