Centre should lower CNG rates: Gujarat govt

The state government has argued before Gujarat High Court that the Central government should provide CNG to the state at lower rates. The state government pleader was arguing over the PIL seeking CNG at lower rates to the state.

PK Jani, the government pleader, on Thursday argued before the high court bench that the companies in the state are providing domestic gas to 8.7 lakh households while they provide CNG to 2.6 lakh vehicles through 240 CNG outlets in the state.

The state saves subsidy of over Rs660 crore to the Central government as it gives Rs360 subsidy per domestic LPG cylinder while Rs10 per litre in petrol and diesel. Therefore, the Central government should extend the benefit of saving of Rs660 crore to the people of Gujarat by allocating CNG at the rates given applicable to Delhi and Mumbai.

Earlier, by filling an affidavit, the Central government had informed the high court that it cannot supply CNG to Gujarat at the Administrative Price Mechanism (APM) rates due to shortage. The Union government further said that Gujarat was already getting 27% of CNG out of total allocation in various cities in the City Gas Distribution System (CGD).

The affidavit states, "Of total firm allocation of 1.222 MMSCMD for CGD sector for the entire country, 0.326 MMSCMD has been allocated to the CDG sector in Gujarat, which is around 27%."