Reliance Industries Ltd (RIL) may cut back on its plan to invest $10 billion in the domestic oil & gas sector over the next five years in case the government insists on regulating gas prices.

As per the government's proposed new policy, the oil & gas producers would be allowed to revise prices of gas only once in three months.

According to a recent report published by Business Line, RIL fears that if the government sets prices of natural gas unilaterally poses a risk to its oil & gas business. A top associate of RIL's oil & gas business said that it would be difficult to convince the company's board for any further investments until there is stability on the risk elements.

The report quoted the associate saying, "It will not be easy to convince our board for any further investments till there is some stability on the risk elements (such as regulatory risks, cost incurred, and market price) involved in the business."

When asked if the company was not happy with the government's decision about revision of oil prices, a source from the company said that the government was deviating from commitments that it made in oil & gas contracts.

On June 27, the Cabinet Committee on Economic Affairs (CCEA) decided that the government would revise oil prices on a quarterly basis and the revised prices would be applicable uniformly to all producers as well as consumers.