After the recent ruling of the Supreme Court in favour of providing cheaper natural gas to Gujarat, and a deal with Gas Authority of India Ltd (GAIL), GSPC Gas Company on Thursday announced to reduce gas prices.
Gujarat Energy Minister Saurabh Patel said here that the price of compressed natural gas (CNG) has been reduced from Rs 66.30 to Rs 56.20 per kg and that of piped natural gas (PNG) from the price range of Rs 25.50-Rs 40 per standard cubic metre (SCM) to Rs 23.50 per SCM.
The domestic gas users were being charged the rate of Rs 25.50 for quantity up to 36 SCM in a two months’ period and higher thereafter. So, these users will get benefit of price reduction from Rs 2 to Rs 9.45 per SCM, he said.
This price reduction will benefit 2.35 lakh vehicle owners using CNG as fuel, and 12.33 lakh household PNG customers, he said.
The new prices will be effective as soon as cheaper gas flow becomes available, he said.
Gujarat had long been demanding parity with Delhi and Mumbai in gas prices, a stand upheld recently by the apex court.
Patel said the Supreme Court had directed the Centre to provide 80 per cent of gas required in Gujarat, as on March 31, 2013, at cheaper rates.
Gujarat’s consumption on this date was 7 lakh SCM per day. So, 80 per cent of it, that is 5.6 lakh SCM per day was now to be priced cheaper. But, in the meantime, the requirement has gone up to 9 SCM per day.
The Centre should take note of this and increase supply of cheaper gas accordingly, he said.