Ahmedabad, 16 November 2013

The ministry of petroleum and natural gas, government of India has issued guidelines for allotment of cheaper natural gas to Gujarat. The guideline given to Gas Authority of India Limited(GAIL) for CNG and PNG supply by Petroleum and Natural Gas ministry’s Director Nikunjkumar Srivastava will be implemented before November 30.

According to it city gas distributes will be given CNG and PNG on the basis of base figure of 8.02 million standard cubic meter for year 2012-13. Natural gas and regassified liquified natural gas(RLNG) will be part of this supply. GAIL will supply gas to all CGD at same price. GAIL will be supplied 6.4 MMSCMD gas for this requirement. As per present Administered Price Mechanism(APM) 5.21 MMSCMD CNG, PNG is supplied. Additional 0.72 MMS CMD will be added to it.

Against the need of 8.02 MMSCMD gas per year, Gujarat will get 80% gas. Thus the state will get 75% gas at Mumbai-Delhi rate while 25% gas will be imported. There’s 15% VAT on gas effective in Gujarat.

The price of CNG according to it is likely to fall by 20%. The Gujarat High Court had in its order asked to comply with its July 2012 order by the November 18 deadline.Current price of CNG in Ahmedabad is Rs 68.30 per Kg. It is in range of Rs. 65 to Rs. 67 per Kg in other parts of Gujarat. At present the gas companies are supplying gas to Gujarat consumers by sourcing costlier imported RLNG.

With the new guideline, Gujarat consumers are likely to get CNG for Rs. 50-55 and PNG for Rs. 27-30.