Citing non-allocation of cheaper natural gas from the Centre, GSPC Gas Company (GGC) today hiked the gas prices in various categories.
GGC, a subsidiary of the state-run Gujarat State Petroleum Corporation (GSPC), has raised CNG prices from Rs 50.20 per kg to Rs 56.90 per kg, while piped cooking gas prices go up from Rs 18.18 to Rs 21.50 (Rs 24.73 with taxes) per standard cubic metre (PSCM), a company official said.
The hike comes into effect from tomorrow January 16. The company operates with a network of around 119 CNG stations in Gujarat. It supplies domestic cooking gas to around 3.9 lakh consumers in the state.
For industrial consumers, the prices will go up from Rs 29.20 PSCM to Rs 32.10 (Rs 36.92 with taxes). We have around 1,700 consumers in the category, he said.
The company also hiked gas prices in non-commercial category, comprising charity institutions from Rs 20.80 to Rs 28 PSCM (Rs 32.20 with taxes). The Gujarat government levies 15 per cent VAT on natural gas.
GGC supplies gas to industry that is based largely in South Gujarat region comprising Valsad, Vapi, Umbergaon, Hazira and Halol. It also supplies gas in Gandhinagar, Nadiad, Morbi, Thangadh, Sunredranagar and Rajkot, the official said.
"In spite of several representations made by the state (Gujarat) government and repeated requests by GSPC Gas Company Ltd, there has been no allocation of any cheaper domestic gas by the Central government," an official statement said.
GGC has, therefore, been constrained to depend entirely on imported natural gas, mainly through the Petronet LNG, which delivers imported natural gas with a price formula that entails a price increase every month, the statement said, adding that it is a GoI promoted company.
The situation has been further compounded, off late, with increase in spot LNG prices internationally and a depreciating rupee against dollar, a company official said.
The LNG prices internationally are touching $18-19 per million metric British thermal unit (MMBTU), which is up from levels of $13-14 per MMBTU 3-4 months back, he said.
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