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Mar 24, 2012, 01.31 PM IST | Source: CNBC-TV18

Govt hints at hike in petrol, gas prices

Union minister for petroleum, Jaipal Reddy, says the government is keen on hiking gas prices and adds that petrol deregulation would go on. Oil PSUs are on wait-and-watch mode.

Jaipal Reddy, Petroleum Minister, GoI

The PM on Friday hinted at a possible increase in gas prices in an address at the Asia Gas Partnership Summit in New Delhi. He added that the economic exploitation of natural resources should lead to a mutually beneficial investment for both investors and the people of India.

Speaking to CNBC-TV18, Union minister for petroleum, Jaipal Reddy, said, Our government initiated gas pricing policy reforms to incentivise production of natural gas. We are aware that remunerative energy prices are needed to ensure expanded energy supplies. The government is committed to taking all possible steps to find viable solutions to meet the concerns of the gas industry.

Commenting on the PMs statement, Reddy said, The PM has made a general statement. I should not try and elaborate on it without working out the details.

Though the oil minister admitted that the deregulation process had taken a pause, Reddy affirmed that the government was keen on fully deregulating petrol.

Oil, petrol continues to be deregulated. However, there was some kind of discontinuation of deregulation. But we'll have to go back to deregulation fully. We are taking various factors into consideration. As of now, we are not contemplating regulation of petrol.

Meanwhile, Indian Oil Corporation chairman RS Butola said that PSU has adopted a wait-and-watch policy till the end of March before taking a decision on hiking petrol prices.

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