Election Commission steps on the gas against price hike

The Election Commission of India ( EC) has asked the petroleum ministry to defer the proposed hike in the price of natural gas produced by domestic companies such as Mukesh Ambani-led Reliance Industries Ltd ( RIL) till elections as the matter is sub judice.

The Union Cabinet had taken a decision to double the price of natural gas produced by domestic companies from $ 4.2 to $ 8.4 per million British thermal units ( mmBtu ) with effect from April 1.

However, Aam Aadmi Party leader Arvind Kejriwal had sought the EC's intervention in the matter after which the poll panel sought details from the government on the proposed price hike. The EC order comes as a setback for RIL as it was charging ahead with plans to hike the natural gas price from its eastern offshore KG Basin field. RIL had already sent drafts of a new gas sale- and- purchase agreement that it wanted fertiliser companies to sign as the current fiveyear contract expires on March 31. RIL will now have to wait.

The decision to hike the natural gas price was opposed by Aam Aadmi Party ( AAP) which alleged that it was taken to favour RIL. AAP leader Arvind Kejriwal, who had during his brief stint as Delhi chief ministerm ordered a first information report against oil minister M. Veerappa Moily, Ambani and others for allegedly conspiring to double the gas price, had asked EC not to approve the revised rate.

CPI leader Gurudas Dasgupta and an non- governmental organisation had filed a petition in the Supreme Court ( SC) challenging the rate hike. The apex court is to resume hearing on the issue from Tuesday.

Though the decision to revise gas prices was first taken in June 2013 and notified on January 10 this year, the petroleum ministry had approached the EC for permission to announce the new price. The petroleum ministry bureaucrats had decided to play it safe. The EC on Monday evening wrote to petroleum secretary Saurabh Chandra saying since the matter is sub judice in the SC, a decision on revision in gas prices could be deferred. The new government that takes over after the Lok Sabha elections will now have to go into the issue afresh.