Citing “failure” of the Centre in supplying natural gas at cheaper rates, GSPC Gas has increased prices of CNG and PNG, prompting Adani Gas, too, to follow suit.
In a statement, GSPC Gas said it has increased prices of compressed natural gas (CNG) by Rs 2 per kilogram with taxes effective from June 19, from the existing Rs 60.15 to Rs 62.15. In the case of piped natural gas (PNG) for domestic use, the prices have been increased from the existing Rs 21.50 per standard cubic metres (SCM) to a bimonthly slab as per consumption. Accordingly, the rates for the first 30 SCM will be Rs.25.50, for 31 to 40 SCMs Rs 34.10 and for 41-plus SCMs Rs 40.
Close on heels of GSPC Gas, Adani Gas Ltd also revised CNG prices by Rs two per kg, in Ahmedabad and Vadodara, on Wednesday, from Rs 63.80 to Rs 65.80, citing “depreciation in Indian rupee against the US dollar and the upward revision in imported LNG price.
In the absence of allocation of gas by the Centre under administered price mechanism (APM) to Ahmedabad, Adani Gas has to depend on expensive R-LNG supplies to fulfill the growing demand by the CNG users, the company said in a statement.
Adani Gas currently supplies gas to over 1.83 lakh domestic, 700 industrial and 1,300 commercial customers in Ahmedabad. It also supplies CNG to two lakh vehicles through 55 CNG stations in Ahmedabad and Vadodara.
GSPC Gas said that despite the Gujarat High Court directing the Centre in July 2012 to make available to the State gas at the prices applicable in Mumbai and Delhi, the Union Government had failed to do so, forcing GSPC Gas to continue importing gas via Petronet LNG Ltd, at higher prices.
GSPC Gas, which entirely depends on Petronet LNG, set up by the Union Government, for imports in the absence of local gas, was thus forced to increase prices.
Petronet LNG supplies gas on the basis of a formula on international prices, which increases every month. The price of spot gas is also increasing in the global market and the depreciation of rupee has further pressurised prices, the company added.