Gujarat Gas hikes gas price by Rs. 5 per unit for Ceramic industry of Morbi

Gandhinagar: Gujarat government arm Gujarat Gas has increased the gas price for Morbi ceramic units by Rs. 5 from today.

The company in its communication dated August 23 claimed that the price hike is on account of substantial increase in natural gas price in international market.

This is second major hike of around Rs. 5 this year. The earlier hike was effected in January this year. The hike is attributed to rise in spot gas price, a major source of purchase. Last year spot gas price was up from USD 4 to USD 8 when hike was made effective. At present the spot gas price is above 15 USD. The State government has paid even more than USD 16 in advance for advance purchase of gas for the month of October, which indicates that price will go further up.

With fresh hike in effect from today, MGO (Minimum Guaranteed Offtake) price (NCV basis) is now USD 15.094 per mmbtu without taxes and therefore Rs. 37.51 per SCM for three months MGO and Rs. 3801 per SCM for one month MGO.

In finished product, Rs. 2 per sq ft price hike in vitrified tiles and Rs. 10 to Rs. 15 per box in vitrified tiles is likely.

Gujarat Gas is State government run company whose Chairman is Chief Secretary Anil Mukim.

Meanwhile, around 100 industrial units that manufacture soluble salt tiles and double charge tiles have been shut for last week or so. They may reopen after price hike negotiations with dealers for end products are completed.

The industry that employ over 3 lakh is recently also facing challenges related to extra-ordinary and never-before hike in prices of transportation of export goods via freight containers. DeshGujarat