Prime Minister Narendra Modi on Sunday met petroleum minister Dharmendra Pradhan for the second time in three days, apparently to hammer out an acceptable increase in natural gas prices that could be announced soon.
After nearly five hours of discussion on issues facing energy sector on Friday, Modi again called a meeting on Sunday with Pradhan where finance minister Arun Jaitley also joined.
Sources said at the Friday meeting the gas price revision was flagged as one of the immediate decisions that the new government needs to take to revive investor interest in the stagnant oil and gas sector.
While the NDA government is keen to take an early decision on the issue, it may be looking at moderating the proposed increase — from current $4.2 per million British thermal unit to $ 8.4, they said adding a new rate may be announced as early as this week.
The new price based on the Rangarajan formula that had been approved by the previous government would result in increase in prices of electricity, urea, CNG and piped cooking gas.