‘Why is cheap gas given to the rich?’

“Piped gas is cheaper than LPG (and) only rich are getting piped gas,” he said at a FICCI conference here,while describing the present city gas distribution pattern as “skewed”.

Indraprastha Gas Ltd (IGL) supplies piped natural gas to households in Delhi at Rs 16.85 per cubic meters or Rs 21.90 per kg. In comparison,a 14.2-kg domestic LPG cylinder costs Rs 345.35 (Rs 24.32 per kg).

“Whether this (pattern) is sustainable as public policy is a matter of debate,” he said,adding the government was committed to spreading city gas distribution network in all major towns of the country.

“The government is committed to making available gas to city gas projects as and when they are rolled out,” he said.

Most city gas projects get domestic gas at the rate of USD 4.2 per million British thermal unit,which is half the rate at which imported liquefied natural gas (LNG) is supplied.

City gas projects,he said,should be more based on imported-LNG to bring parity between the gas users and liquid fuel consumers.

Sundareshan also raised the issue of lower tax rates on compressed natural gas (CNG) supplied to automobiles when compared to almost equally environment friendly petrol.

“Excise rate on CNG is 4 per cent while that on petrol is almost 14 per cent,” he said adding this was causing a huge price difference between the two products.

“Whether such large price differential are justifiable is a matter of debate,” he said while at the same time raising the issue of subsidised diesel being consumed by big cars.