Finance Minister P Chidambaram on Friday blamed a low domestic output and difficult macroeconomic situation while defending the government's decision to nearly
double natural gas prices from next year.
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Manmohan Singh, on Thursday approved a proposal to hike gas price for the
first time in three years.
"Decline in domestic production is resulting in rise in import of LNG. We have to produce more gas," Chidambaram said while addressing a media conference in the national capital.
The finance minister said due to decline in domestic output and rising consumption, oil import bill was becoming unsustainable and that there was a need for creating a conducive environment to promote investments in boosting domestic gas production.
"The gas pricing will promote investment in the sector and there is no reason to assume that prices will always increase," Chidambaram said.
The minister also emphasised that the government has not taken the decisions under
pressure from the private sector.
"We are not being influenced by anyone... We are influenced by the economic reality to produce more gas," he said.
With inputs from IANS 
Finance Minister P Chidambaram 
Special 
