State-run GSPC Gas Company (GGC), the largest city gas distributor in Gujarat, today hiked prices of CNG by Rs 3 per kg, and of industrial gas by over Rs 1.90 per standard cubic metre (SCM).
"Price of industrial gas has been increased from Rs 35.50 to 37.40 per SCM (without taxes), while CNG prices have been increased from Rs 63.30 to Rs 66.30 per kg (with taxes)," a GSPC statement said.
GGC, the retail wing of Gujarat government-owned GSPC, operates in 21 major towns and cities, with a network of 120 CNG stations fueling around 65,000 vehicles everyday and has around 1,443 industrial customers.
According to industry sources, the hike in CNG prices comes in the wake of a sliding rupee against the dollar.
Other (City Gas Distribution) CGD players in Gujarat like Adani, Gujarat Gas, Sabarmati, GAIL, Charotar, HPCL may follow the suit and raise CNG prices, industry sources said.
"The gas sourcing pool of each company varies. The boards of respective CGDs in Gujarat will take a look on how to offset the losses on account of rupee slide as majority of them are dependent on gas imports from overseas," they said.
GGC has been demanding allocation of cheaper domestic gas from the Centre at par with the prices as it supplies to Delhi and Mumbai under the Administered Price Mechanism (APM).
Citing non-allocation of cheaper natural gas from the Centre, GGC had hiked CNG prices by Rs 2 per kg, and of piped cooking gas by Rs 4 per standard cubic metre for first 30 SCM, in June this year.
Gujarat government levies 15 per cent VAT on natural gas.
GGC supplies gas to industry, largely in South Gujarat region, comprising Valsad, Vapi, Umbergaon, Hazira and Halol.
It also supplies gas in Gandhinagar, Nadiad, Morbi, Thangadh, Sunredranagar and Rajkot, an official said.
