The Prime Minister and the UPA government should not increase the price of natural gas prematurely as demanded by the RIL. Price revision is due only in April 2014. The RIL’s demand for reimbursement for increased capital expenditure should not be accepted. There has to be a performance audit by the CAG of the capital expenditure incurred and the production targets met by the RIL.
The government decision seems motivated to ensure the market for RIL’s gas since the lower priced gas of the public sector enterprises would have been more attractive for the power and fertilizer producers.