This refers to ‘Changing energy scenario’, April 7. You assume that gas prices are supposed to have a direct link with crude oil prices and so you say that Reliance Industries’ KG Basin gas is incorrectly priced. Your editorial argues that the way the gas has been priced, it is virtually irrelevant as to what the crude oil price is since the gas price hardly varies. The world over, gas prices are long-term contracts and do not fluctuate on a daily basis. You have quoted the Prime Minister’s Economic Advisory Council on how the pricing was opaque, that new/larger bids had to be called for. But if the price is indeed as high as you’re making it out to be, no one will buy it. Since there are enough buyers, how can the gas be over-priced?
Sanjay Jain, New Delhi
