CNG to cost 39.75 per kg

SURAT: Now, it is the turn of CNG users in south Gujarat to feel the pinch of price hike. The Gujarat Gas Company Limited (GGCL) has announced, effective from Monday midnight, a marginal eight per cent price revision in CNG, taking the revised end-customer price to Rs 39.75 per kilogram from the existing 36.75 per kilogram.
This is the third consecutive revision in the CNG prices by GGCL since January 2011.In January 2011, the auto-rickshaw unions had opposed the price hike by increasing the per kilometer tariff by Re 1.
The six-month period from January to June 2011 has witnessed a phenomenal increase in the number of CNG vehicles in the diamond city. About 12,000 CNG-run cars got added in the last six months taking their number in the city to 76,000. In all, there are about 1.15 lakh vehicles including cars, auto-rickshaws, buses and tempos running on CNG in the city.
According to CNG retrofitters, there has been a steep increase in the CNG conversion in the last three months with the Central government increasing the prices of petrol and diesel. On an average, about 3,000 petrol cars are converted into CNG per month against an average of 1,500 cars per month before March 2011.
This has led to the increase in the sale of CNG by 20 per cent in the last six months in the city, putting pressure on city gas distributors (CGD) to increase the CNG filling station infrastructure in and around the city.
The revision in CNG prices, according to the company, has been done in view of the increased operation and maintenance activities related to setting up of CNG infrastructure in Surat and south Gujarat region, increase in the equipment fuel cost and distribution cost and enhanced safety measures etc.
Compared to other city gas distributors (CGDs) in north, central and south Gujarat like Adani Gas and the subsidiaries of the state government undertaking Gujarat State Petroleum Corporation (GSPC) - GSPC Gas and Sabarmati Gas - the CNG price of GGCL is still on the lower side, sources said.
As far as Surat, Bharuch and Ankleshwar are concerned, the price of CNG is on the lower side at Rs 39.75 per kilogram compared to Rs 40.50 per kilogram and Rs 40.25 per kilogram, respectively, in central and north Gujarat.
A GGCL statement said there is a rapid growth in CNG vehicles in its operating area of Surat, Bharuch and Ankleshwar. The company plans to expand its CNG infrastructure to facilitate easy availability of CNG.
"Currently, the company dispenses CNG through 42 stations in its operating area and many more such stations are expected to be set up in this year. Last year, 11 CNG stations were added and we hope to keep a similar trend in the coming year," said a company spokesperson.
"There will be a marginal impact of eight to 10 paise on per kilometre cost of vehicles running on CNG. An approximate comparison between the mid sized vehicles running on petrol and CNG shows that, the daily operating cost for an average running of 35 km on CNG comes at Rs 65 as against approximately Rs 160 for a petrol vehicle," he added.