The government has approved a hike in natural gas prices by 12 per cent to Rs 3,200 per thousand standard cubic meters from Rs 2,850 for power and fertiliser units.
The Cabinet Committee on Economic Affairs had approved the gas price increase at a meeting last week but Finance Minister P Chidambaram had at that time stated that a decision on price revision for natural gas had been deferred.
Sources said that the minutes for the CCEA meeting issued this week stated that the CCEA had approved the price increase last week.
Experts say that gas companies and ONGC stand to benefit the most from the move.