Natural gas price hike will raise power, fertiliser cost: CPI

CPI today said the recent hike in natural gas prices would only benefit the Reliance Industry and have a severe impact on the people as the government's decision would raise the prices of power and fertiliser.
"Government's decision to increase the price of gas would severely impact the cost of production of power and fertiliser. This would impact the common people who are already suffering due to high inflation," CPI general secretary S Sudhakar Reddy told PTI-Bhasha here.
He also reiterated the Left parties' demand for the resignation of Petroleum Minister M Veerappa Moily on the issue.
Reddy also claimed Moily had not pursued his ministry's earlier decision to impose a hefty penalty on RIL for producing gas "much below its capacity".

The Cabinet Committee on Economic Affairs had on June 27 approved the hike in the price of domestically produced gas from April 1 next year to USD 8.4 per unit compared to the current level of USD 4.2.
Reacting to Finance Minister P Chidambaram's statement that government would consider concessions for the power and fertiliser sectors, he said the government had more time in hand to decide on such concessions but have taken a quick decision to hike the gas prices.
The CPI leader refuted contentions that ONGC and OIL would also benefit along with the RIL due to the gas price rise, saying the move would benefit RIL more than the state- owned companies.

He also lamented that the main opposition BJP was "keeping mum" on the gas price hike and the adverse effect it would have on the economy.