 "Doubt domestic gas supply move will sustain, if Centre doesn't subsidise: Saurabh Patel")
It's been some time since Gujarat government had been demanding equality in domestic gas supply. Now the Centre has done it. Your comments.
Gujarat is maybe the only state which has given lot of importance to building up infrastructure of bringing in gas as well as to promote this clean fuel. GSPC Gas, Sabarmati Gas along with Gujarat Gas were instructed and directed to put in lot of gas grid for small consumers.
The central government saves subsidies on petrol, diesel, kerosene and LPG by promoting natural gas. Gujarat itself is annually saving more than Rs 600 crore as far as subsidies are concerned.
We had requested the Centre that this inequality should be removed and uniform pricing should be there for all states.
After the Supreme Court ruling in favour of CGDs, the Centre came up with the guidelines by which 80 per cent of the gas would be given for domestic use and 20 per cent should be imported by the CGDs. In spite of the guidelines given in the court, the Centre only gave us 71 per cent.
So we again went to the HC that it was a contempt of court.
So we are very happy that finally our fight since many years regarding equality has been accepted by the Centre and they have come out with new guidelines saying uniform prices will be there for all CGD users in the country.
Do you think the Centre's move to offer full domestic gas for CGDs is short lived or will sustain in the long run?
In the past, Gujarat had repeatedly told the Centre that priority sectors should be given domestic cheaper gas and industries like steel and petrochemicals should not be. This for the first time they have admitted because till many years this government never admitted that they are giving it to big industries.
However, it all depends upon the Centre. If they take a call and give a subsidy, it will sustain. But if they cannot, then the decision of new gas pricing policy will come into place from first of April. And if that happens, I doubt the benefit of domestic gas offering to CGDs will sustain. Either they are fooling the people or they have something about which they are not coming out to the public right now.
Moreover, as far as the information which I have whatever the base price is decided today, the prices will change from first of April which will be $8.4 per mmbtu which is double than the existing APM price of $4.2. So if a decision is not taken immediately in this regard whether the government is going to subsidise it or pass on the burden, we are expecting a big increase in CNG prices in the months to come which I don't think the common man will be able to absorb.
What is Gujarat's total gas requirement and what is the current shortfall?
We are getting 71 per cent today and we hope to get another 30 per cent. In next 2-3 days the base price along with quantum will be announced. Gujarat's requirement is around 1.82 million scmd of which we receive 71 per cent. We are short by 29 per cent i.e. 0.52 million scmd.
What were the financial and other losses Gujarat had to incur due to shortfall in domestic gas?
The loss has been in several crores of rupees because the imported LNG price is currently around $19 while the domestic gas price is around $4.2. However, because we had long term contracts, we used to get it little bit cheaper.
In Gujarat, we want to expand the existing households of 1.2 million. But the Centre's policy did not allow us to expand. Many parts of the state, in spite of Gujarat having its gas grid in place, they are not giving us permission to put in the pipeline structure for households. Otherwise we would have crossed 2 million by now.
Will Gujarat see a gas price reduction? If yes, by how much?
It all depends on the calculations of the base price decided by the Centre. We don't want to speculate. If we get a firm price, we will take a call and pass on all the benefits to the consumers. That is our direction.