The Ministry of Petroleum and Natural Gas (MoP&NG) has refused to consider requests for a rollback in the price of APM gas in the country, which was increased to $4.2/mmbtu recently. - Responding to such request, among many, from the Chief Minister of Tripura, the Ministry of Petroleum and Natural Gas (MoP&NG) has asserted that the increase was necessary for making hydrocarbon production a profitable venture for the national oil companies (NOC), which had been facing mounting losses due to below-cost sales.
- Further, it has asserted that allowing a healthy profit to such PSUs was necessary to incentvise future exploration and production, as most under-production wells are ageing.
- As a long-term recourse, the ministry has suggested that the state government encourage the installation of closed cycle power plants in Tripura, as against the prevailing open cycle ones, which are inefficient and consume excessive quantities of gas.
- In addition, the MoPNG has alleged that the Union government already meets a large proportion of the state's gas expenses through subsidies, which are increasing each year. As such, no further concessions are appropriate, claims the ministry in a recent rejoinder to the Tripura administration
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