The prices of natural gas for power and fertiliser units are likely to be raised by 12.5 per cent to Rs 3,600 per thousand cubic metres in July, according to oil secretary M.S.Srinivasan.

At present natural gas is sold at a government-fixed lower rate of Rs3,200 per thousand cubic metres. "The Tariff Commission has given its report and we will go to the cabinet next month on pricing ofadministered gas," Srinivasan said.

Around 40 million cubic metres of gas is supplied to power, fertiliser and other customers at the government fixed price by Oil and Natural Gas Corporation and Oil India Ltd.

The administered prices apply to gas produced from the blocks awarded to state-run oil companies on nomination basis before the introduction of competitive bidding.

Gas supply from these blocks is depleting. It is expected to reach 29.6 million standard cubic metres a day by 2009-10.

The prices of administered gas for non-power and non-fertiliser users were last raised by 20 per cent to Rs 3,840 per thousand cubic metres in July last year.