India Raises Gas Price To $5.61 Per Unit, Deregulates Diesel (Intro Roundup)

The arbitration concerns the penalty imposed by the oil ministry on the company for failing to meet output targets from RIL-led consortium's D-1 and D-3 fields in the KG-D6 eastern offshore block to the extent of 1.9 trillion cubic feet of gas.

Announcing the diesel price deregulation, Jaitley said: "Price of diesel will be linked to the market, and therefore, depending on whatever is the cost involved, is the element that consumers will have to pay."

"Just like petrol prices, diesel cost will now be governed by market forces. The diesel prices were being increased by 50 paise or so over the last few months. The prices should come down as the global crude oil prices have dropped substantially in recent times," he added.

The cabinet also decided to relaunch the Modified Direct Benefit Transfer Scheme in LPG (cooking gas) in 54 districts from mid-November and in the rest of country from Jan 1, 2015.

"The cabinet has revisited the scheme design and processes and after thorough review, it has approved the modified DBTL," the statement said.

Jaitley said that "in addition to the Aadhar platform, all those with bank accounts will get LPG subsidy to their accounts directly".

Indian industry welcomed the diesel price decontrol as a highly progressive move.

"The price of fuel products such as diesel should reflect the true market value and this would also encourage all users to economise on their diesel consumption and hence aligns with the objective of promoting environmentally sustainable growth," industry chamber FICCI president Sidharth Birla said in a statement.

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