The direction comes in the wake of several hikes in natural gas prices by CGDs.
The state government has written to various city gas distribution companies (CGDs) asking them not to raise gas prices - of both Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) - without its prior approval. The direction comes in the wake of several revisions in natural gas prices by retailers in recent months.
The state government has written to Gujarat Gas Company Limited, Adani Energy Limited, the state-owned GSPC Gas Company Limited, Sabarmati Gas Limited, Hindustan Petroleum Corporation Limited (HPCL) and Charotar Gas Sahakari Mandali Limited, which cater to lakhs of gas consumers of
different segments in the state.
"This is with reference to the revision in gas prices for industrial, commercial, non-commercial and domestic segments including CMG for transportation sector," KH Chorera, under secretary in the state energy & petrochemicals department, said in the letter to the above named CNG retailers.
The letter dated April 2, 2011, further states, "Considering the larger public interest, particularly end consumers of PNG and CNG, the government has carefully considered the raising of gas prices for end consumers. Accordingly, as directed, I am to request you not to increase gas prices to end consumers without prior approval of the government of Gujarat."
Energy department officials said that initially the letter was planned to be written only to Gujarat Gas Company Limited. However, the government decided to also write to the other gas retailers. The officials conceded that the state government does not have any say in the pricing of CNG. However, they added that they have written to CNG retailers in the larger interest of the public.
The CNG prices in the state have increased by around 25% in the past year or so. From around Rs30 per kg a year back, gas prices are now in the region of Rs36-37 per kg. Also, with every hike in gas prices, consumers have to pay more as VAT.
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