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Having begun receiving additional cheaper domestic gas as per the Centre's recently revised guidelines, Adani Gas and state-owned GSPC Gas have reduced prices for CNG (transport) and PNG (domestic).
While Adani Gas revised the same in Ahmedabad and Vadodara by Rs 12 per kg and Rs 5 per scm, respectively, effective from February 19, GSPC Gas reduced the same by Rs 11.30 per kg and Rs 7.05 per unit for CNG (transport) and PNG (domestic), respectively.
According to an official statement by Adani Gas, price of CNG (transport) in Ahmedabad and Vadodara for the company now stands revised at Rs 46.75 per kg, down by Rs 12 per kg from Rs 58.75 per kg. On the other hand, price of PNG (domestic) has been revised by Rs 125.48 per MMBtu (roughly Rs 5 per scm) to Rs 615.22 per MMBtu (approx. Rs 23.80 per scm) from Rs 740.70 per MMBtu (approx. Rs 28.80 per scm) excluding value added tax (VAT).
At a 15 per cent VAT, the downward revision in PNG gas price now stands at around Rs 707.503 per MMBtu (or roughly Rs 27.37 per scm).
Similarly, a state government communique stated that the change in prices will be effective from February 20 even as it abolishes the slab-based billing system. At GSPC Gas, CNG (transport) price was reduced by Rs 11.30 per kg to Rs 44.90 per kg from the previous Rs 56.20 per kg, including VAT. The PNG (domestic) at the company saw a downward change of Rs 7.05 per unit or 23 per cent at Rs 23.40 per unit down from Rs 30.55 per unit excluding VAT.
The Government of India had recently issued revised guidelines dated February 3, 2014 for allocation of domestic gas to City Gas Distribution (CGD) entities for CNG (transport) and PNG (Domestic).
With Adani Gas signing a supply agreement with GAIL in this regard, the Ahmedabad-based CGD player has begun receiving the allocated domestic gas resulting in immediate price revision. However, company sources stated that since the supply allocation is based on last six months' average demand, Adani Gas is receiving only 90 per cent of the required domestic gas as against the previous 71 per cent.
The price reduction would, however, benefit 190,000 households and approximately 150,000 CNG users in Ahmedabad and Vadodara.
Meanwhile, other CGD players like Gujarat Gas and GSPC Gas are also likely to follow suit in terms of price revision provided similar supply agreements are signed for domestic gas.
It needs to be mentioned here that in the last week of December itself, both Adani Gas and GSPC Gas had reduced CNG (transport) and PNG (domestic) prices, respectively. While Adani Gas reduced it by Rs 10.05 per kg and Rs 8.2 per scm, respectively. GSPC Gas had reduced it by Rs 10.10 per kg and Rs 2 to Rs 9.45 per standard cubic meter (SCM), respectively.
For Adani Gas, the price revision was made in the wake of the company being allocated limited quantities of cheaper domestic gas for CNG and PNG segments in Ahmedabad and Vadodara.
