Rs. 12 per Kg cut in CNG prices likely in Gujarat within this month

Ahmedabad/Gandhinagar, 10 December 2013

CNG price in Gujarat could be down by Rs. 12 most probably within this month. A joint secretary in Ministry of Petroleum and Natural Gas(MoPNG) today met Gujarat minister Shri Saurabh Patel and discussed the gas supply issue with him. According to all parties who participated in meeting, amicable solution has arrived on this issue.

In the High Court earlier

Gujarat High Court today disposed of a petition on CNG supply, after a joint secretary in Ministry of Petroleum and Natural Gas (MoPNG) today appeared before it and informed that all technical problems in supplying natural gas to the state have been resolved.

The secretary in MoPNG was last week asked to appear before the High Court today in case of failure to work out a supply arrangement of Compressed Natural Gas (CNG) to Gujarat at the same price as Delhi and Mumbai under the Administered Price Mechanism (APM).

The High Court gave the order as consumers were not supplied cheaper CNG by the Centre even after an undertaking given to the court by the central government that it would do so by November 30.

Joint Secretary P K Singh today informed a division bench of Chief Justice Bhaskar Bhattacharya and Justice J B Pardiwala that all technical difficulties in supplying CNG to Gujarat have been solved.

“The learned Assistant Solicitor General of India, appearing on behalf of the respondent (Centre) submits that the technical problem that had accrued earlier regarding supply of the natural gas to the state of Gujarat has been resolved and GAIL has agreed to supply the gas at the GSPL (Gujarat State Petronet Limited) and PLL (Petronet LNG Ltd) direct connectivity at Dahej, subject to the statutory tariffs decided by the regulatory authority, namely, Petroleum and Natural Gas Regulatory Board,” the court said.

Disposing of the petition, the court observed that since the Centre and state government had arrived at an agreement, no further order was necessary.

“In view of the above agreement arrived at amongst the parties, no further order is necessary. It is needless to mention that the respondent-authority will comply with the averments made in the earlier affidavit filed before this court, including compliance of the guidelines stated in the said affidavit,” the bench said.

“The application is, thus, disposed of,” the court said.

The gas companies will now have to enter into an agreement with Gas Authority of India Limited (GAIL) to avail supply of natural gas to them.

“The gas companies, it goes without saying, will now enter into necessary agreement and will issue a Letter of Credit as required under the law,” the court further held.

In a judgement delivered last year, the Gujarat High Court had asked the Centre to supply CNG to Gujarat at the same rate at which it is supplied to Delhi and Mumbai.

The ruling of Gujarat High Court, which was challenged by the Centre, was upheld by the Supreme Court.

Dhrangadhra Prakruti Mandal, a non-governmental organisation, had filed a PIL in Gujarat High Court in 2011, alleging discrimination against the state in allocation of natural gas under the APM, as compared to Delhi and Mumbai.