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This is an archive article published on June 28, 2013

Who all will the natural gas price hike hit?

UPA govt bit the bullet and raised gas prices. And that is extremely bad news for people.

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In a move that hopes to boost exploration and investor sentiment,the UPA government Thursday approved an increase in the price of natural gas effective from April 2014,in line with a complex pricing formula suggested by the Rangarajan Committee.

Here are the people who will suffer the consequences of the govt8217;s actions:

The hike would directly impact over 21 lakh households using piped natural gas

More than 17 lakh vehicles running on CNG

It would also jeopardize the economic competitiveness of more than 1,000 small and medium enterprise sectors

The blow would be higher for 119 million farmers who would have to pay 65 per cent more for urea from Rs 5,360 per tonne to Rs 8,892 per tonne.

 

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