Gujarat govt cuts 40 paise in fuel surcharge, benefiting 1.75 crore customers

Gandhinagar: A reduction of 40 paise per unit has been made in the applicable fuel surcharge for the period from October 2024 to December 2024, which will remain in effect until no further changes are made, Energy Minister Kanubhai Desai announced today at a press conference in the state capital.

Desai stated that the 40 paise reduction in the fuel surcharge would benefit approximately 1.75 crore consumers, providing them with an estimated total benefit of Rs. 1,120 crore on their electricity consumption from October to December 2024.

Providing further details, the Energy Minister explained that, as per the fuel surcharge formula approved by the Gujarat Electricity Regulatory Commission (GERC), during the relevant quarterly period from April 2024 to September 2024, the fuel surcharge (FPPPA) of Rs. 2.85 per unit was being collected from consumers by the state-owned electricity distribution companies, based on changes in the price of electricity fuel.

He further mentioned that the fuel surcharge of Rs. 2.85 per unit would continue to be charged during the ongoing quarterly period from October to December 2024. The state government has effectively maintained the fuel surcharge rate during this year. Moreover, considering efficient electricity procurement management and stable electricity purchasing rates during the current financial year 2024-25, the state government has decided to reduce the fuel surcharge rate by 40 paise per unit in the larger interest of consumers. Therefore, from October 1, 2024, during the ongoing quarterly period, consumers will benefit from a reduction of 40 paise per unit on their electricity consumption.

He added that the new rate of Rs. 2.45 per unit, reduced from Rs. 2.85 per unit, will apply for the period from October to December 2024. This reduction of 40 paise per unit will result in an estimated benefit of approximately Rs. 1,120 crore for about 1.75 crore consumers in the state during this period.

Furthermore, for residential consumers who consume 100 units of electricity per month, the reduction in the fuel surcharge will result in an estimated monthly savings of Rs. 50 to 60, the minister added. DeshGujarat