Cabinet nod to raise prices of natural gas 'irrational': CPM

Strongly opposing the Cabinet approval to nearly double the prices of natural gas from the next financial year as "irrational", CPI (M) today demanded that the decision should be kept in abeyance.
The main benefit from the decision will accrue to a "single Corporate House", which is virtually "blackmailing" the country by keeping production of natural gas in a basin below the stated target till the price is increased, the party said in a statement.
"The polit bureau of the CPI(M) strongly opposes the Cabinet decision to double the price of natural gas, a major input for the production of fertilisers and power, from 4.2 billion dollars to 8 dollars per mmbtu.

"This will have a cascading impact increasing prices and burdening common people, while the main benefit will accrue to a single party," the release said.
The party said that the hike is irrational even in comparison to gas exporting countries, where the price of domestic gas is much lower.
"For example, in Gulf countries, the price is only USD 1 per mmbtu, in Egypt USD 2.57, in Nigeria USD 0.11 and in Indonesia around USD 1," the statement said.

"...This government, which claims it does not have funds to ensure a universalised food security system, is prepared to subsidise the profits of a powerful corporate House.

"Government will pass much of this burden to the common people. Farmers will have to pay more for fertilisers, the price of CNG gas used by public transport in many cities will also be hiked as will electricity tariffs," it said.
Maintaining that natural gas is a natural resource, which belongs to the country, it cannot be arbitrarily handed over for super profits to corporates, the said, "the CPI (M) demands that the decision for the price increase should be kept in abeyance and fully discussed in Parliament."
The government had yesterday approved near doubling of natural gas prices to USD 8.4 from April 1 next year, a move likely to result in rise in power tariff, urea cost and CNG prices. CPI had criticised it yesterday.