Adani Total Gas Limited (ATGL) increased its price of compressed natural gas (CNG) in Ahmedabad by Rs 1.99 per kg on Tuesday. The increased price now stands to Rs 85.89 per kg. Industry sources reveal that other gas distribution companies in the city are also considering increasing prices.
A one kg of CNG now costs only Rs 6.21 less than a litre of diesel. Diesel costs Rs 92.1. It costs 10.43 less than a litre of petrol, which costs Rs 96.4, says the latest fuel prices notification.
The Federation of Gujarat Petroleum Dealers’ Associations state that CNG prices have been raised by 52.55% in 11 months.
Price of residential piped natural gas (PNG) also increased from Rs 1,514.8 per MMBTU to Rs 1,542.8 per MMBTU effective August 2, Tuesday.
Prices have increased by about 68%, compared from Rs 915 per MMBTU in June 2021 to today’s Rs 1,542.8 per MMBTU. A message circulated by ATGL to its customers stated that the prices of PNG had to be raised considering International developments and their effects on gas prices.
Automobile dealers fear that the constantly increasing prices of CNG will adversely affect the sales of CNG variants of automobiles.
A city-based dealer said that CNG vehicle sales were already affected because the semiconductor shortage had led to a mismatch of demand and supply. Further, continuous raises in CNG prices will lessen the demand for CNG vehicles. Industry players are scared that the high CNG prices will affect industrial activity as well.
Pathik Patwari, president of Gujarat Chamber of Commerce and Industry, said that the pattern of higher gas prices is spread throughout the world. But, the rise in CNG prices will surely affect industries and consumers who rely on fuel for various operations. Many public transport vehicles also run on CNG and, hence, their costs will go up. More expensive PNG prices will add to the inflationary pressures and cause difficulty for household budgets.