only recourse for the government is to appeal to the Supreme Court since the PILs and arbitration is pending, no termination of the pricing notification can be done nor any other legal process be activated at this stage. There is no propriety in examining the same issue at two places,” one source said.
Moily reaffirmed Friday there was “no question” of stalling the gas price increase from April 1 as demanded by Kejriwal in a letter to Prime Minister Manmohan Singh Wednesday.
Kejriwal’s letter was sent by the Prime Minister’s Office to the petroleum ministry Thursday. In its reply, the ministry rebutted that “cost of production cannot be the benchmark for fixing price” - a stand taken by Rangarajan while replying to Dasgupta’s letter to the PM last November.
The ministry claims that the policy decision was taken in consultation with all shareholders, including the user departments and the rationale for the pricing formula was based on legal, contractual and industrial requirements.