Questioning the idea of market-determined prices for natural gas favoured by the petroleum ministry, the Planning Commission said on Tuesday that given the shortage of the fuel, the government had a role to play.
"In fact, there should be a regulator for the petroleum sector with the power to fix prices," Kirit Parikh, Planning Commission member (energy) told PTI.
Parikh's comments came a day after petroleum ministry told a meeting of Committee of Secretaries the government had no role in fixing prices of gas as licensing terms
Earlier, Andhra Pradesh Chief Minister Y S R Reddy had sought intervention of Prime Minister Manmohan Singh for appointment of a regulator for natural gas while apprehending that market discovered prices being sought by Reliance Industries would lead to a 'monopolistic' situation.
The Energy Coordination Committee, headed by Singh, had earlier referred to the CoS the pricing of natural gas, an issue on which Mukesh Ambani-led Reliance Industries Limited and Anil Ambani Group are having differences.