Ministry says Gail can't charge marketing margins

24-Feb-06

In the on-going tussle between state-run Gail and Indian Petrochemicals Corporation (IPCL), the Government has said that the Gas Pricing Order 2005 does not allow Gail to charge marketing margin on selling government-regulated gas. However, an internal meeting has been called to discuss the issue. IPCL had approached the petroleum ministry against the termination notice served by Gail, that it was not entitled to charge marketing margin on the gas it sold to industries. On February 9, Gail had served a notice to terminate gas supplies to IPCL unless it cleared Rs 64.02 lakh outstanding towards marketing margin.