. The central cabinet has approved the proposal of the Petroleum
Ministry to hike the price of domestically produced natural gas to
$8/mmbtu from April,2014 from the current $4.2.
Retail consumers will be badly affected as they will have to pay more
for electricity,compressed natural gas used as auto fuel and piped
natural gas for cooking.Fertilizer price also will be badly impacted
and this will raise government’s subsidy burden.
Who is the beneficiary of this steep hike;it is none other than the
Reliance Industries
For Reliance Industries,the KG-D6 price of $4.2/mmBtu is valid till
March,2014, and the new price become effective from April,2014.
Every dollar’s increase in gas price impacts Reliance’s revenue by
$100 million and profit by $74 million.
For some time lonf Reliance was pressurising the Petrolem ministry for
increasing the price of natural. gas only for more profit and the new
Minister despite stiff opposition from the top officials was ready to
agree to the Reliace’s demand.
So once again,the Manmohan Singh led UPA government has proved
that it is the government for the corporates and by the corporates!