Barely a week after state-run GSPC Gas slashed prices, private sector gas distribution major Adani Gas too has slashed prices for auto and domestic segments in the range of Rs 8-10/kg effective today.
Interestingly, the move comes on a day when gas consumers in Delhi have been burdened with a steep price hike of Rs 4.5 a kg.
Gujarat-based Adani Gas has cut compressed natural gas and piped natural gas prices by Rs 10 and Rs 8 in Ahmedabad and Vadodara.
The company’s CNG and PNG prices excluding VAT are now Rs 58.75/kg and Rs 28.80 per SCM, respectively.
The sharp reduction in prices is a result of the recent Supreme Court ruling to allot cheaper natural gas to Gujarat. GAIL (India) Ltd and GSPC Gas Company struck a deal for cheap gas, which resulted in lower prices.
Adani Power and GSPC are facing the brunt of costly gas supplies in the absence of supplies from the domestic pool. They had to depend on costlier imported R-LNG for distribution to their customers.
“With allocation of domestic gas though limited, it would help in stabilising prices and bring much needed comfort to customers. This reduction is also expected to increase penetration of CNG in these cities thereby helping improve the air quality,” Adani Gas said in a statement.