Revised prices effective from today; UPA faced criticism after Nov 3 hike. GSPC Gas raises CNG prices citing international market, Adani Gas may follow suit.
First the good news! State oil firms have slashed petrol prices by Rs2.33 per litre in the city effective from today. Now comes, the bad news. Compressed Natural Gas (CNG) is now dearer by Rs5 per kg as GSPC Gas has hiked the prices. The new rate will come into effect from Wednesday onwards.
Petrol in Ahmedabad, which was around Rs73.07 per litre is down by Rs2.33 to Rs70.74 per litre. Indian Oil Corporation (IOC), the largest of the three state-run oil marketing companies (OMCs), said fall in global crude prices and a stable rupee had effected the decision. The rupee is now valued at 49.30 against a dollar. The last slash in petrol prices happened three years ago, in January 2009.
Incidentally, when oil marketing companies (OMCs) announced a hike in petrol prices, on November 3, the rupee was still hovering at over 49 a dollar.
It should be noted that the United Progressive Alliance (UPA) government has been under attack from both its allies and opposition parties for the constant hike in petrol prices. The last hike was announced on November 3 this year.
Meanwhile, every kg of CNG will now cost Rs5 more in Gujarat. Close on the heels of HPCL hiking gas prices, GSPC Gas too has affected a steep hike in gas prices. The company, a subsidiary of the state-owned GSPC, has revised prices of industrial gas as well as CNG.
Officials said that the price of industrial gas has been revised from Rs21.80 per cubic metre to Rs26.70 per cubic metre, a rise of more than 22%. The price of CNG has been hiked from Rs40.25 per kg to Rs45.25 per kg, a jump of 11%.
The price of commercial gas has been increased from Rs29.10 per cubic metre to Rs42.55 per cubic metre, a hike of 46%. GSPC Gas said that the hike would come into effect from midnight of November 16.
GSPC Gas, which is entirely dependent on imported gas for meeting its requirement, attributed the hike to the sharp rise in LNG prices in international markets. Another reason cited for the hike was the sharp depreciation of the rupee vis-à-vis the US dollar in the recent months. The company also pointed out that this was the first hike by it in over four months.
Adani Gas is also expected to follow suit. An Adani Gas official said that a price rise was imminent, but refused to speak about the quantum of hike.
GSPC Gas said that in spite of several representations, it had not been allocated cheaper domestic gas by the central government, and had to depend entirely on imported gas. It may be worth noting here that recently, the state government filed a complaint against Gujarat Gas in the Competition Commission of India (CCI), accusing the private sector player of engaging in monopolistic practice. The government said the company was charging a high CNG price despite getting cheap domestic gas. (With inputs from agencies)
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