While the Congress has attacked the state government for high VAT on fuels, the government has blamed discriminatory attitude of Congress-led UPA government for high CNG prices in the state.
The war of words between the Gujarat government and opposition over high fuel prices continues. While the Congress has attacked the state government for high VAT on fuels, the government has blamed discriminatory attitude of Congress-led UPA government for high CNG prices in the state.
The state government has also shown readiness to lower CNG price by 30% if it is allocated cheaper gas. "The UPA government is solely responsible for high CNG prices. The state government has no say or role in deciding CNG prices," energy minister and state government spokesperson Saurabh Patel said.
Patel said that Delhi and Mumbai were among 10 cities that were getting cheap CNG according to Administered Price Mechanism (APM) formula, while Gujarat had to depend totally on imported LNG to meet its CNG requirement.
The minister further said that the Empowered Group of Ministers had allocated around 10 million metric standard cubic metre per day (mmscmd) gas from Reliance's D6 block to steel plants and refineries, but no allotment has been made to GSPC Gas, which requires less than 1 mmscmd.
He pointed out that Petronet LNG has hiked prices every month between October 2009 and April 2011, resulting in a staggering rise of 47% in gas price from Rs9.34 per standard cubic metre (scm) to Rs13.69 per scm.
"The Gujarat government is ready to lower CNG prices by as much as 30% if the Centre allocates CNG to Gujarat as per the APM formula and from KG basin," he said.
Patel urged Congress leaders from Gujarat to rise above party politics and to plead the state's case before the central government in the interest of the citizens.
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