CNG prices are lowest in Surat

Narayan B Bhatt / TNN / Dec 22, 2005, 21:21 IST

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Gujarat Gas Co Ltd, subsidiary of British Gas, is selling CNG at Rs 22.55 per kg in Surat, Bharuch and Ankleshwar.

SURAT/AHMEDABAD: Compressed natural gas (CNG) is being sold at different prices in Gujarat's cities.
It is being sold in Ahmedabad at a significantly higher price of Rs 25.53 per kg by Adani Energy (Gujarat) Ltd, than other agencies selling it in Surat and Vadodara.
Gujarat Gas Co Ltd (GGCL), subsidiary of British Gas, is selling CNG at Rs 22.55 per kg in Surat, Bharuch and Ankleshwar.
Gujarat State Petroleum Corp (GSPC) is selling CNG at an even lower price of Rs 19 per kg in Surat. GAIL is supplying CNG at around Rs 21.7 per kg in Vadodara.

Why is the CNG selling price much higher in Ahmedabad compared to the other cities? Are the CNG users being over-charged? Is there no regulator who fixes the CNG prices in the state?
GSPC's managing director DJ Pandian told ToI that they keep track of gas prices on behalf of the state government.
"We have gone through the entire price structure of Adani's CNG supplies to consumers and have found the end price reasonable.

Adani's cost of acquiring gas is much higher than other players and their depreciation charges too are higher as they are making substantial investments. So, their prices are higher in Ahmedabad," claimed Pandian.
Rajeev Sharma, head of Adani Energy, told ToI that Adani's return on investments is the lowest due to higher input costs as well as depreciation.
Adani gas acquisition cost from GSPL is around Rs 13 per kg. To this is added an electricity cost of about Rs 1.3 per kg, sales tax of about Re 1 per kg and Rs 3.44 per kg towards excise cost.
Srinivas Desai, Gujarat secretary of the Western India Automobile Association said that it is surprising why there was no regulatory agency for fixing CNG prices, on the lines of petrol, diesel and kerosene.
"While no member has raised the issue of higher CNG prices in the city, we will now look into the matter and try to find why is there such a significant difference," he added.

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