GSPC increases CNG gas prices

Ahmedabad, 15 November, 2011

Citing the non-allocation of cheaper natural gas from the Centre, the GSPC Gas Company (GGC), a subsidiary of state-run Gujarat State Petroleum Corporation (GSPC), today announced a hike in the gas prices in various categories, impacting industry and end-users.

The hike will come into effect from tomorrow (November 16), an official statement said.

This is the third hike announced by the company this year. The oil and gas PSU has raised the prices of CNG from Rs 40.25 per kg to Rs 45.25 per kg, while it has revised the prices of gas supply to industry from Rs 21.80 per standard cubic meter (PSCM) to Rs 26.70 PSCM, a company official said.

The company has hiked gas prices in commercial user category, comprising hotel and restaurants from Rs 29.10 PSCM to 42 PSCM, he said.

The company operates with a network of around 119 CNG outlets in Gujarat. GGC supplies gas to industry based largely in South Gujarat region comprising Valsad, Vapi, Umbergaon, Hazira and Halol. It also supplies gas in Gandhinagar, Nadiad, Morbi, Thangadh, Sunredranagar and Rajkot, a company official said. In spite of several representations by the Gujarat Government and repeated requests by GSPC Gas Company, there has been no allocation of any cheaper domestic gas by the Government of India, said an official statement.

GGC depends entirely on imported gas, mainly through the Petronet LNG, a GoI promoted company, which delivers imported gas on a price formula that entails a price-increase every month, it further said.