Pooled price for natural gas will remove incentive for sourcing LNG at lowest price: Chaturvedi

New Delhi, Dec.19 (ANI): The government has admitted that pooling the price of natural gas has a down side as there would be no incentive for the importer to source natural gas at the lowest price.

This was stated by the Secretary of the Petroleum and Natural Gas, G.C. Chaturvedi, while addressing the 10th Petro India with the theme 'Dilemma of Energy Pricing', organised by Observer Research Foundation and the Energy Forum in Delhi.

Chaturvedi said pricing of natural gas is itself complicated and that "having different prices for gas from different sources was making the matter even more difficult to resolve."

He said that fertilizer companies were able to pass through any increase in the price of natural gas as they could recover it as subsidy from the Government.

Chaturvedi said the remedy may become worse than the malaise and so much thought is required before embarking on a solution to natural gas pricing.

Explaining the difficulty in introducing reforms in pricing natural gas, Chaturvedi said that pricing is a function of political economy. He said that what is politically not acceptable and economically not feasible is thrown out but most of India's dilemma is about what is politically not acceptable but economically feasible.

"When talk about pricing, we have to keep its practical side also in mind, and if not, it would continue to remain a theoretical exercise," Chaturvedi said. (ANI)