New Delhi A new policy on natural gas allocation for the next 10 years that is under discussion will benefit gas trading companies like Gail India but will make consumers pay more for not only power but also a clutch of industrial goods. It could also upset the government’s plan to reduce the subsidy on fertilisers.

This policy envisages mandatory use of imported liquefied natural gas or LNG (a minimum of 25% of the fuel/feedstock mix), which is substantially costlier than domestic natural gas that is expected to be in short supply.