Did you wish that all the speculation of a sharp hike in Petrol prices effective today remain a joke on 'Fool's Day'? Well, your wish has come true as far as petrol prices are concerned, with oil marketing companies (OMC) putting the decision on hold.
But, that is that. The shy of 'relief' on Saturday soon turned into despair after steep hike in the prices of compressed natural gas (CNG) and piped natural gas (PNG). CNG prices have been revised by 10.32% while PNG, which is used as cooking gas, has become expensive by 13.68%. The CNG which was sold at Rs45.50/kg till Saturday will now cost you Rs50.20 after a hike of Rs4.70. Though merely 1.50 lakh households use PNG, it will come as a pinch of salt to consumers as they will cough up Rs24.50 per kg in place of Rs21.55, a rise of Rs2.95 per kg.
According to Adani Gas, distributor of CNG and PNG in Ahmedabad, the revision of 10.32% in CNG and 13.68% in PNG was necessitated on account of significant increase in the prices of international crude as well as LNG.
In last one year, Adani Gas has hiked the price of CNG by Rs10. From Rs40 per kg in April 2011, it has shot up to Rs50.20 per kg effective today. Earlier, company had maintained price at Rs.45.50 per kg since November, 16, 2011.
Adani Group is buying 9.50 lakh cubic meter per day natural gas for distribution in Ahmedabad and Vadodara.
The entire quantity of imported gas is bought from state government's company, GSPC. So, after GSPC hiked the prices, it was passed onto the consumers by the Adani Gas. "In last one year, the prices of imported LNG have shot up by 50% from around $10 per mmbtu to $15 per mmbtu. On the other side, the depreciation of Indian rupee has meant that it remained above levels of 50 against dollar. It has forced the company to pass the hike in imported gas prices to the consumer," an official of Adani Group said. Adani Gas operates 50 CNG stations in Ahmedabad and 7 CNG stations in Vadodara and supplies over 3.50 lakh kg of CNG to over 1 lakh vehicles every day. Company also supplies natural gas to 1.50 lakh domestic customers, 700 industries and 1,100 commercial customers in Ahmedabad.
