A meeting of the Group of Ministers on freeing natural gas pricing from government control would be held next month, Petroleum Minister Ram Naik said in Lok Sabha on Thursday.
Final decision on gas pricing would be taken by the government after considering the recommendations of the GoM headed by Deputy Chairman of Planning Commission K C Pant, which was currently reviewing the issue, he said during Question Hour.
Secretaries of the ministries of petroleum and natural gas, power and fertiliser had completed their task of reconciliation on April 1 and the GoM would meet next month to consider it, he said.
As per the government's 1997 decision on the issue, the price of natural gas was linked to that of a basket of international fuel oils and a review was to be undertaken to reach 100 per cent price parity with fuel oils by 2001-02, Naik said, adding the gas price is proposed to be market determined after its deregulation.
Stating that import parity pricing would be advantageous to all LNG projects, he said prices of CNG would depend upon the market price of LNG and natural gas.
Two terminals specifically for import of LNG were being constructed at Dahej (Gujarat) and Kochi (Kerala), Naik added.
