Rs1.60 hike in PNG prices in Gujarat from today

Another shock in store for piped natural gas (PNG) users in the state! Adani has hiked tariff of gas by Rs1.60, effective from August 1. The tariff rise is due to the increase in the international price of the gas, sources said.

The new rate for PNG will be Rs21.55 per cubic metre, against the current rate of Rs19.95. “We do not get domestic gas. We have to import it. As the rates of the imported gas have gone up and will go on increasing, the input price has shot up.

In such a scenario, we are bound to increase the PNG prices,” said officials of Adani. The last hike in Adani’s PNG was around 3-4 months back, when the company has affected marginal rise of 20 paise.

In spite of the latest rate hike, PNG will be cheaper as compared to LPG (liquefied petroleum gas).  The prices of LPG have sky rocketed to around Rs400 per cylinder.

When asked about the reason for importing gas, the official, requesting anonymity said, “The primary reason why we have to import gas from the international market is that Central government is not allocating administered price mechanism (APM). Hence, the price in Gujarat for PNG is high as compared to other states.”