Date:25/06/2005 URL: http://www.thehindubusinessline.com/2005/06/25/stories/2005062502420300.htm

Back Gas price hike may increase input costs for power, steel cos

Our Bureau

New Delhi , June 24

THE input costs for the fertiliser, power, steel and petrochemical sectors may go up following the decision to increase the ceiling price of natural gas.

The new gas prices come into force from July 1.

The Petroleum Ministry has recently issued an order increasing consumer price of gas for power and fertiliser units to Rs 3,200 per thousand standard cubic meters per day from Rs 2,850. The increase is likely to hit Reliance Industries, Essar Steel and GAIL India. The Cabinet Committee on Economic Affairs (CCEA) had on May 19 approved an ad-hoc increase in natural gas prices. However, according to official sources, the natural gas price for the North-East sector would be 60 per cent of the new price, officials said.