Stiff resistance from the coalition allies has forced the Prime Minister to push the long-pending increase in natural gas prices to the backburner by referring the issue to a Group of Ministers (GoM).Atal Bihari Vajpayee ordered the review after power and fertiliser ministries opposed the petroleum ministry’s proposal to the Cabinet seeking hike in gas prices to Rs 4,300 per thousand cubic metre from Rs 2,850, and further to Rs 5,800 from next April.Sources said the opposition by Telegu Desam Party (TDP) also weighed heavy while putting off the price rise. TDP leader Chandrababu Naidu has raised the issue with the PM several times and has written letters saying that a price rise would jeopardise the ongoing power reforms in his Andhra Pradesh State.In order to play safe, the PM ordered the formation of the GoM with Power Minister Anant Kumar Geete of Shiv Sena and Fertiliser Minister S. S. Dhindsa of the Shiromani Akali Dal as its members. And while doing so, he avoided fixing a deadline within which the GoM would have to submit its report. Others in the group are K. C. Pant, Ram Naik and Arun Shourie. But it does not include Finance Minister Jaswant Singh whose ministry last December supported the phased increase in prices, but opposed it this month saying that high gas prices would result in higher fertiliser subsidy bill.Sources said that the non-exclusion of Finance Minister would further delay the implementation of GoM’s recommendations as it would have to be vetted by the Finance Ministry before being brought to the Cabinet for approval.
