Iran won't sell cheap gas to India, Pakistan
Laiyla Sheerazi 'Pakistan Times' Foreign Correspondent

TEHRAN (Iran): Iran will not sell its gas at knockdown rates to India and Pakistan, a senior oil official said on Wednesday amid a pricing dispute in talks over a planned pipeline.

"The price suggested by India and Pakistan is almost half of the price we offered," deputy oil minister Mohammad-Hadi Nejad-Hosseinian said on state radio.

"If the two governments intend to subsidies their domestic gas, there is no reason for Iran to pay this subsidy," he added.

The Iran-Pakistan-India gas project envisages a pipeline of about 2,600 kilometres (1,600 miles) that would help meet South Asia's growing energy needs.

Quoted by the local news agency, Iranian oil ministry's Nejad-Hosseinian said Iran was not desperate to sell its gas to India and Pakistan.

"The tripartite Peace Pipeline agreement is not an absolute obligation," he said.

He also warned India and Pakistan that if the nuclear issue is resolved, other countries "will be the first customers of our gas and will pay even better prices."●