Gujarat Gas Ltd on Wednesday hiked the prices of industrial natural gas for the Morbi region in Gujarat, official sources said. Morbi houses India’s largest ceramic clusters, and the increased cost is expected to hit profits, said manufacturers.
The prices of industrial natural gas have been raised by ₹2 to ₹2.48 per standard cubic meter (SCM) from Thursday. Officials from Gujarat-government-owned entity said the prices were hiked as the prices of natural gas in the international markets have been increasing since April.
Ahead of the Lok Sabha elections in the country earlier this year, Gujarat Gas had reduced the prices of industrial natural gas by eight per cent for ceramic manufacturers of Morbi and Suredranagar in Gujarat. “The price rise is a significant one and it will adversely affect the profit margins of ceramic manufacturers,” said KG Kundariya, former president of Morbi Ceramic Associations and a ceramic manufacturer based in Morbi.
The industrial gas prices for Minimum Guaranteed Offtake (MGO) contract has been raised from Rs 41.68 to Rs 43.68 per SCM, while the prices of non-MGO contracts have been raised from Rs 49.36 to Rs 51.79, sources added.