CNG to be cheaper by Rs. 10.10, PNG by Rs. 2.00 to 9.45 per kg in Gujarat

Ahmedabad, 19 December 2013

After a long legal battle, gas consumers in Gujarat may finally get cheaper gase from next week onwards.

After a meeting held today between the Gas Authority of India Limited(GAIL) and seven gas distribution companies active in Gujarat, state minister Shri Saurabh Patel declared that whenever GAIL will start supplying gas, CNG price in the state will witness cut of Rs. 10 while PNG price will witness cut in range of Rs. 2.00 to 9.45 per kg.

Patel said as many as 2,35,000 CNG using vehicles and 12,30,000 PNG using houses will benefit from this development.

Existing rate of CNG per kg in Gujarat is Rs. 66.30. The new rate will be Rs. 56.20. New rates will result into per day savings of Rs. 40 lakh in Gujarat for CNG vehicle owners.

Home users(PNG) will get upto 36 SCM gas for Rs. 23.50 per kg and beyond that at Rs. 30.55 per kg.

Patel said the centre had agreed to supply 80% of total usage of gas at cheaper rate to Gujarat with cut off date of 31 March 2013. At that time the state had 7 lakh standard cubic meter per day gas usage. As per the 80% assurance, the centre agreed to supply 5.6 lakh sqm cheaper case. However as per the 30 November 2013 situation, Gujarat has added new gas consumers worth 9 lakh sqm per day gas consumption. Therefore the 80% gas assured by centre is effectively just 66%. The centre should therefore supply rest of 34% gas.

He said GAIL has imposed Rs. 42.46 MMBTU connectivity charge to supply gas at Dahej connectivity point. Due to this, GSPC has increased per Kg gas price by Rs. 3.00. If central government is ready to give relief in connectivity charge, gas could be even cheaper in the state.

He said if central govt had simply agreed to follow the order of the Gujarat High Court in July 2012, gas consumers in Gujarat could save Rs. 600 crore till now.