<p>Finance Minister P. Chidambaram Friday said the government was forced to almost double the gas prices due to low domestic output and difficult macroeconomic situation. <br /><br /></p>.<p>“Decline in domestic production is resulting in rise in import of LNG. We have to produce more gas,” Chidambaram said while addressing a media conference here. <br /><br />The Cabinet Committee on Economic Affairs chaired by Prime Minister Manmohan Singh Thursday approved a proposal to hike gas price for the first time in three years. <br />Chidambaram said due to decline in domestic output and rising consumption, oil import <br />bill was becoming unsustainable. <br /><br />The finance minister emphasised the need for creating a conducive environment to promote investments in boosting domestic gas production. <br /><br />He said high gas price would help attract investments in the sector. <br /><br />“The gas pricing will promote investment in the sector and there is no reason to assume <br />that prices will always increase,” he said. <br /><br />Chidambaram emphasised that the government has not taken the decisions under pressure from the private sector. <br /><br />“We are not being influenced by anyone... We are influenced by the economic reality to produce more gas,” he said.</p>
<p>Finance Minister P. Chidambaram Friday said the government was forced to almost double the gas prices due to low domestic output and difficult macroeconomic situation. <br /><br /></p>.<p>“Decline in domestic production is resulting in rise in import of LNG. We have to produce more gas,” Chidambaram said while addressing a media conference here. <br /><br />The Cabinet Committee on Economic Affairs chaired by Prime Minister Manmohan Singh Thursday approved a proposal to hike gas price for the first time in three years. <br />Chidambaram said due to decline in domestic output and rising consumption, oil import <br />bill was becoming unsustainable. <br /><br />The finance minister emphasised the need for creating a conducive environment to promote investments in boosting domestic gas production. <br /><br />He said high gas price would help attract investments in the sector. <br /><br />“The gas pricing will promote investment in the sector and there is no reason to assume <br />that prices will always increase,” he said. <br /><br />Chidambaram emphasised that the government has not taken the decisions under pressure from the private sector. <br /><br />“We are not being influenced by anyone... We are influenced by the economic reality to produce more gas,” he said.</p>