The government has decided to more than double the price of Natural Gas. A decision to this effect was taken by the cabinet, which approved the increase in the price of natural gas from 3200 rupees per thousand cubic meters to 6818 rupees per thousand cubic meters. <br/><br/>The increase is expected to result in the hike of CNG prices by 20 per cent. Briefing media on the decision taken by the Cabinet in New Delhi today, the Information and Broadcasting Minister, Mrs. Ambika Soni said that the impact of the increase on power will be only marginal while the selling price of fertilizers will remain unaffected. She said that 40 percent of the price would be provided as subsidy by the centre for the customers in the north-east. Mrs. <br/><br/>Soni also said that the Administrative Price Mechanism, APM, price of natural gas was last increased in 2005. She said that the low price of gas has discouraged the national oil companies from making investment in oil blocks. <br/><br/>As the gas fields of ONGC and Oil India Limited are aging, substantial expenditure is necessary to maintain the production.<br/><br/>She said that the cost of equipment has also increased manifold in the last few years and these two companies have been making substantial losses and therefore the increase was necessary. <br/><br/>She also said that the revision in the price will encourage investment in the national oil companies in gas exploration and production which will result in enhancing availability of gas. <br/><br/>The Joint Secretary in the Petroleum Ministry has said that the prices of power could go up marginally by over 2 and half percent.