Gujarat: After petrol, diesel, now pay more for CNG, PNG

Till now, users of petrol and diesel were complaining of sharp rise in fuel prices. Now, the price of Combined Natural Gas (CNG) and Piped Natural Gas (PNG) also seems to be meeting the same fate following the rise in price of domestic natural gas by the Petroleum Ministry.

The price has been increased to USD 3.36 per Million Metric British Thermal Unit (MMBTU) from the existing 3.06 MMBTU. The hike will be applicable from October 1 onwards. This will result in a rise of four to five per cent in the price of CNG and PNG, market sources say.

This is the third consecutive hike taking place every half yearly, and will have an effect on the price of CNG, considered a clear fuel for vehicles, and PNG that provides cooking gas to households through a piped network.

The Retail Selling Price (RSP) of CNG and PNG in the state rose about five to seven per cent in October 2017 and about three to four per cent in April 2018. Now, they are further slated to rise by about four to five per cent. In the past, City Gas Distribution companies have passed on the hike to end users, and this time also, it would not be any different.

Arvind Thakkar, president of Federation of Gujarat Petroleum Dealers Association, the apex body of all local associations of petrol pump operators in the state, said the price of CNG in Ahmedabad is Rs 50 per kg. "We have not got any information on the hike yet. The prices will be revised, once we get the official information," Thakkar said. The revised price is estimated at Rs 52.5 per kg.

Similarly, the price of PNG in Ahmedabad is Rs 643.40 per MMBTU. This is expected to rise to 675.57 per MMBTU. The prices of CNG and PNG in other parts of Gujarat is higher than those in Ahmedabad.

Nilesh Shukla, president of Gujarat Chapter of India SME Forum said the rise in price of industrial fuel will affect all industries, in different degrees, which will hurt the competitiveness of Indian companies in domestic and global market. "Rise in prices of fuel will increase the input cost of manufacturers. India is one of the worst hit countries in the current spell of rise in prices of fuel. The dilemma is that buyers are not willing to pay higher prices," said Shukla.

He said that the rise in price of PNG and CNG will affect households as well. Sectors like ceramics, chemicals, dye and intermediaries and foundry are the one which are energy intensive and will be hit very hard with the rise in price of industrial gas.

EXISTING PRICE

PNG price: Rs 643.40/MMBTU
Commercial PNG: Rs 1272.06/MMBTU
Non-Commercial PNG: Rs 1205.04/MMBTU