The government on Saturday has fixed new gas price at USD 5.61 per million british thermal unit (MMBTU), increased from USD 4.2 per mmbtu earlier, reports CNBC-TV18. It also reduced diesel price by Rs 3.37 per litre following decline in global oil prices in last few days.
The government on Saturday has fixed new gas price at USD 5.61 per million british thermal unit (MMBTU), increased from USD 4.2 per mmbtu earlier, reports CNBC-TV18.
Finance Minister Arun Jaitley said the new gas price hike will be effective prospectively and will be revised on a half-yearly basis.
This new gas price hike will be effective from November 1, 2014.
Meanwhile, India also announced that it would lift controls on diesel pricing with immediate effect, leading to an immediate fall in pump prices of nearly 6 percent and easing the subsidy burden on Prime Minister Narendra Modi's government.
"Henceforth, like petrol, pricing of diesel will be market determined," Finance Minister Arun Jaitley said after a cabinet meeting.
The Rs 3.37 (USD 0.05) a litre cut in prices of diesel, triggered by falling global oil prices, will help ease inflation that has already fallen to a multi-year low.
"We have decided to reduce prices and in Delhi, prices are likely to go down by Rs 3.37 a litre from midnight tonight," said B Ashok, chairman of Indian Oil Corporation, the country's biggest fuel retailer.
(With inputs from agencies)
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