Consumers using compressed natural gas (CNG) operated vehicles in Ahmedabad and Vadodara will now have to shell out more for fuel as Adani Gas Ltd, a private sector company engaged in city gas distribution (CGD), on Monday increased the price of CNG by Rs 2.78 per kg or 8.5 per cent. The company attributed expensive regasified liquefied natural gas (RLNG) to the rise in CNG tariffs.
"We have increased CNG price by Rs 2.78 per kg from November 22. Now, CNG gas sold by Adani Gas will cost Rs 35.45 per kg," said a company official.
Earlier this month, the company had increased gas prices for its industrial, commercial and domestic consumers. However, it did not hike the price of CNG. Couple of months back, 45,000 auto-rickshaw owners in Ahmedabad had launched a one-day strike against price rise.
Gujarat is largely dependent on imported natural gas. "The cost of imported gas is increasing every month and the company has passed on the burden on consumers," said industry sources.
The allocation of gas by central government to CGD players in Gujarat is inadequate. "If the government supplies five mmscmd gas to Gujarat, the CNG price could come down by 2-3 per cent," sources added.
Adani Gas, a wholly owned subsidiary of the Adani Enterprise Ltd (AEL), operates around 47 CNG stations in Ahmedabad. The city has 78,000 CNG vehicles.City gas distributors such as GSPC Gas Company, Adani Gas and Sabarmati Gas procure gas from state-owned Gujarat State Petroleum Corporation (GSPC), which has to import RLNG to meet the growing demand of gas in the state.Overall, Gujarat has presence of six CGD players consuming close to 8 mmscmd of gas with customer base of about six lakh connections in households, industry and commercial establishments.