CNG, PNG, electricity prices cut in Gujarat

Ahmedabad, April 1 (IANS) The Gujarat government on Friday announced a cut in prices of compressed natural gas (CNG) and piped natural gas (PNG). The electricity tariff has also been reduced.

According to Energy Minister Saurabh Patel, the state-owned Gujarat Gas Co Ltd (GGCL) had reduced PNG prices by Rs.2.77 per standard cubic meter and CNG prices by 90 paise a kg.

The new rates are effective from midnight.

He said in a statement that as many as 12 lakh piped gas connections and over eight lakh vehicles in the state would benefit from the decision.

The CNG and piped cooking gas prices across the country were expected to fall after natural gas rates were on Thursday cut by a steep 20 percent.

The prices of natural gas produced from existing fields of state-owned ONGC and Reliance Industries Ltd had been cut to $3.06 per million British thermal units effective from Friday.

The global natural gas prices too have been under pressure due to steep fall in crude oil prices, to which the gas prices are generally linked.

The Gujarat Electricity Regulatory Commission (GERC) has cut the prices of power ranging from 10 to 28 paise per unit for various consumers across the state.

Despite being one of the major hydrocarbon hub, with more than two-thirds of the country’s hydrocarbons being produced or passing through the state, the people in Gujarat generally pay one of the highest costs for their energy needs.

The present cuts are expected to provide respite to individuals as well as industrial units in the state.

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