CNG users get ready for price hike

SURAT: CNG users in Surat, Bharuch and Ankleshwar get ready for another bout of revision in the gas price in the next few days.
With the CGDs in central and north Gujarat like Adani Gas and the subsidiaries of the state government undertaking Gujarat State Petroleum Corporation (GSPC) — GSPC Gas and Sabarmati Gas — increasing the CNG prices, the Gujarat Gas Company Limited (GGCL) is expected to follow the suit by revising the prices for the consumers in Surat, Bharuch and Ankleshwar.Reason: prices of imported gas increasing every month and the steep increase in the petrol prices has left the City Gas Distributor (CGD) to face immense pressure to fill the demand-supply gap with a sudden increase in the CNG demand from Surat, Bharuch and Ankleshwar.
Recently, Adani Gas and the GSPC subsidiaries GSPC Gas and Sabarmati Gas revised the CNG prices by 84 paise and Rs 2.55 per kilogram respectively. The reason cited by the CGDs behind the price hike was the increase in the imported gas prices and the rising operational cost.
As far as Surat, Bharuch and Ankleshwar are concerned, the price of CNG is on the lower side at Rs 35.25 compared to Rs 37 and Rs 38, respectively, in central and north Gujarat towns.
It was in January 2011, the GGCL revised the gas price from Rs 32.45 to Rs 35.25 per kilogram. This time around the company may revise the price at par with other CGDs in the state.
Sources said the petrol prices going upward have shifted the focus of the vehicle owners towards the cheaper CNG. However, the CGDs are facing immense pressure to source imported gas at high prices in order to fill the gap between the demand and supply.
"The CNG costs between Rs 35 and Rs 38 per kilogram. If a comparison is done between the vehicles running on petrol and CNG, the daily operating cost for an average running of 35 kilometers for CNG comes at Rs 60 against Rs145 for the petrol vehicle. However, the CNG conversion rate has doubled up in the last few days after the hike in petrol prices," said Ghanshyam Patel, authorised dealer of CNG kits.
Yusuf Bandy, regional transport officer (RTO) told TOI, "The vehicle conversion rate from petrol to CNG has doubled up in 2011. As against 2,000 CNG cars registered by the RTO per month, the figure has crossed to over 3,500 per month."