The fertiliser ministry has opposed Reliance Industries' demand for hiking the KG-D6 gas price in line with the Asian LNG spot price, effective from April 2014. The ministry wants the price to be not more than $8/mmBtu.
RIL pitched for the gas price, post March 2014, to be about 10% below the spot price of LNG imported from Qatar — $12-13 at current rates. According to sources, during discussions with the government, the fertiliser ministry contended that such a price (on which consumers will have to pay an extra $1-1.5 to cover transporation charges and marketing margins) is not viable for the fertiliser industry whose output is highly subsidised, adding that any such move will cause a burden on the exchequer.
Links:
[1] http://admin.indiaenvironmentportal.org.in/news/ministry-blocks-ril%E2%80%99s-kg-d6-gas-price-hike-plan
[2] http://admin.indiaenvironmentportal.org.in/category/author/sunny-verma
[3] http://admin.indiaenvironmentportal.org.in/category/author/prashant-mukherjee
[4] http://admin.indiaenvironmentportal.org.in/category/newspaper/financial-express-new-delhi
[5] http://admin.indiaenvironmentportal.org.in/category/thesaurus/natural-gas
[6] http://admin.indiaenvironmentportal.org.in/category/thesaurus/fuel-pricing
[7] http://admin.indiaenvironmentportal.org.in/category/thesaurus/liquefied-natural-gas-lng
[8] http://admin.indiaenvironmentportal.org.in/category/thesaurus/ministry-chemicals-and-fertilizers
[9] http://admin.indiaenvironmentportal.org.in/category/thesaurus/petrochemical-industry
[10] http://admin.indiaenvironmentportal.org.in/category/thesaurus/fertiliser-industry
[11] http://admin.indiaenvironmentportal.org.in/category/thesaurus/energy