After Adani, GSPC Gas too hikes prices

Ten days after Adani Gas Ltd (AGL) increased CNG prices, GSPC Gas Company Ltd (GGCL), a subsidiary of the State-promoted GSPC Group, also increased gas prices with effect from today (Wednesday).

Blaming the Centre for not allocating cheaper gas, GGCL said it has increased the price of piped natural gas (PNG) by 30 per cent and of compressed natural gas (CNG) by 10 per cent, inclusive of taxes and duties.

Accordingly, PNG prices for domestic users have gone up from Rs 16.91 per standard cubic meters (SCM) to Rs 20.91 per scm and CNG from Rs 45.25 per kg to Rs 50.20 per kg, according to a company statement here.

GSPC supplies PNG to many towns and cities of Gujarat, besides small and medium industries, and CNG through 130 CNG stations. “If the Centre agrees to the company’s request for allocation of cheaper domestic gas, the prices will be revised downwards.”

AGL increased the price of CNG to Rs 50.20 per kg from Rs 45.50, inclusive of 14.42 per cent excise duty and 15 per cent VAT on April 1. The company has maintained the price at Rs 45.50 per kg since November 16, 2011.

Both AGL and GGCL depend on imported gas supplied by the Centre-promoted Petronet LNG Ltd.

AGL operates 50 CNG stations in Ahmedabad and seven in Vadodara. It also supplies gas to 1.50 lakh domestic customers, 700 industries and 1,100 commercial customers in Ahmedabad.

Apart from non-allocation by the Centre, the price situation has worsened with the recent increase in spot LNG prices internationally and the value of Indian rupee depreciating against the US dollar.