A group of ministers will meet on Tuesday to discuss hiking the natural gas price after four years of government cap, and may approve a Rs 400 per thousand cubic meters increase to Rs 3,250 per thousand cubic meters.

"The GoM will discuss the recommendation of committee of secretaries to immediately hike the domestic natural gas prices from Rs 2,850 per thousand cubic meters to Rs 3,250 per thousand cubic meters," official sources said on Monday.

The committee of secretaries, which was asked by group of ministers to look into deregulation of pricing of natural gas, also recommended maintaining the price at Rs 3,250 per thousand cubic meters for the next two years while allowing Oil and Natural Gas Corporation to sell gas from joint venture fields at market rates.

While the petroleum ministry wanted the price to be raised to Rs 3,850 per thousand cubic meters, ministries of power and fertiliser conceded an increase of only Rs 400.