The Vadodara Municipal Corporation has proposed a steep hike in piped gas price after nearly 43 per cent cut in allocation of Administered Price Mechanism gas (cheaper domestic natural gas) to the city. Union Petroleum and Natural Gas Ministry has reallocated APM to various city gas distribution companies. VMC's share was reduced from 1,00,000 standard cubic meters a day to 57,100 cubic meters.
Municipal Commissioner Manish Bhardwaj said as a result it has to now buy gas from other sources, at higher prices, which necessitated hike in prices for the consumer. There are 78,000 piped natural gas (PNG) customers in the city, including 3,000 commercial establishments.