The government, on the basis of a very questionable methodology, has doubled the price payable to natural gas producers. Through this decision as with a similar one in 2009, the government has compromised economic reasoning at the altar of crony capitalism and political expediency. In the absence of a homogeneous gas market which throws up a market price, the only option should have been for an independent, professional and quasi-judicial regulator to compute effi ciency-based costs and determine the price on the basis of a reasonable return. Instead, a Group of Ministers has taken a decision which could transfer up to Rs 26,000 crore a year to producers, especially one private company.