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Gujarat to roll back CNG price hike

Tuesday, 3 August 2010 - 12:27pm IST | Place: Gandhinagar | Agency: PTI
Minister says Centre provides imported gas to Gujarat, which leads to frequent changes in prices.

Here is the good news for you. You will not be affected by the recent hike in CNG prices. The state government said on Monday that it would roll back the recent hike in CNG prices. While terming the Centre's petroleum policy as flawed one, the state government alleged that the Centre is providing imported gas to Gujarat, which leads to frequent changes in gas prices.

Saurabh Patel, minister of state for energy and petrochemicals, said that the prices in the state move according to the changes in price in international market. "Gujarat is getting gas, which is being imported from Qatar under a long-term agreement between Qatar and the Central government's company Petronet LNG.

On the other hand, big cities like Mumbai and Delhi are getting gas, which is produced in the country. Prices of imported gas fluctuate more as they are linked to oil prices in the international market. The Centre is providing domestically produced gas to industries and not to the domestic users," Patel said.

He further said that the prices of domestically produced gas are fixed for five years and the change in the prices are done on Administered Price Mechanism (APM). The prices of imported and domestically produced gas are $ 6.91and $ 4.2 per million metric British thermal units (mmBtu) respectively.

"We have written to the central government on several occasions to provide domestically produced gas but there is no response from it. Our need of gas for domestic use like cooking and transportation is hardly 10 lakh standard cubic meter. Like in Mumbai and Delhi, we too can provide gas at lower prices if the Centre provides us the domestically produced gas," Patel said, adding that the recent price hike in the CNG prices will be revoked.

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