Oil Pricing: Formula for an unbalanced equation

If the price of domestic natural gas is almost doubled next year to $7.4 a million British thermal unit ( mmBTU), little will change for those using natural gas at home and in vehicles. However, the impact on government finances will be substantial. Retail consumers already pay a higher price for imported gas at over $16 per mmBTU but unless the government raises the administered selling price of electricity and urea-based fertiliser, its own subsidy obligations will jump by over Rs 28,000 crore.

Read Full Story>>