The government will take up the issue of decontrol of gas price at the time of framing a long-term Gas Pricing Policy, Petroleum Minister Ram Naik informed the Rajya Sabha on Tuesday.
He said during the Question Hour that under the New Exploration Licensing Policy contracts, producers were presently free to sell gas at market price in accordance with the terms of the contract.
Under Production Sharing Contracts finalised earlier, the companies are free to sell gas while the government has the right to buy it directly or through a nominee at a price mentioned in the respective PSCs, he said.
Naik said the impact of gas pricing on power and fertiliser sectors would be clear once the long-term policy was decided.
He informed the members that a Group of Ministers headed by deputy chairman of Planning Commission K C Pant has considered the question of gas pricing.