Twitter
Advertisement

Gujarat Gas revises CNG price by 4.5%, PNG by 5%

The revised prices would come into effect from midnight of April 18

Latest News
article-main
Picture for representational purpose
FacebookTwitterWhatsappLinkedin

Seventeen days after the central government revised price of domestically produced natural gas, Gujarat Gas hiked prices of Compressed Natural Gas (CNG) and domestic Piped Natural Gas (PNG) by 4.5-5% on Tuesday.

From Rs 47.50 per kilo so far, Gujarat Gas revised CNG price to Rs 49.65, an increase of 4.5 per cent, while that of domestic PNG was hiked by 5 per cent from Rs 20.85 per standard cubic metre to Rs 21.95, industry sources said. The revised prices would come into effect from midnight of April 18.

Gujarat Gas is the largest city gas distribution in the country, and has presence in more than 15 districts in the state.

The price hike is a bit steeper than expected. Industry experts had pegged the revision in retail CNG and PNG price at about 3-4 per cent, but the hike is a bit more than that. Industry players said that this is because the rupee has weakened against the dollar in recent weeks, which makes imports expensive.

Adani Gas, which operates in Ahmedabad and Vadodara, is likely to revise gas prices in a day or two, company officials said. Incidentally, Adani Gas had withdrawn the price revision when prices were last revised in October, but had hiked prices in January.

On April 1, the Central government revised price of domestically produced natural gas from $2.89 per Million Metric British Thermal Unit (MMBTU) to $3.06 per MMBTU for the six-month period from April-September 2018. The increase was in line with the gas pricing formula based on average prices in key global gas trading hubs.

This is the second time when CNG and PNG prices have been revised upwards. Before that, prices had fallen for five straight times since November 2014.

Industry players said that in spite of the hike, the running cost of CNG vehicles remains 53 per cent cheaper compared with petrol-fueled vehicles, and 28 per cent to diesel-driven vehicles. Similarly, PNG remains 39 per cent cheaper than non-subsidised LPG and 10 per cent cheaper than subsidised LPG.

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement