Reports suggest that compressed natural gas (CNG) is costlier in Ahmedabad than in Delhi, Mumbai, Pune because Adani Gas, which distributes gas in Ahmedabad, is entirely dependent on imported gas.
The company has to depend on imported gas because it does not have access to domestically produced gas, while companies in Delhi, Mumbai and the other cities are supplied domestic gas, reports suggest.
It is learnt that the the pricing of CNG across cities reflects the huge difference in price of domestic and imported gas. Gas sourced at $16 per million metric British thermal units (mmbtu) from international markets cannot compete with domestic gas sourced at $4.2 to 5.75 per mmbtu, reports indicate.
The price of CNG in Ahmedabad is over Rs 60 and is selling at Rs 60.15 per kg. As against this, CNG in Mumbai and Thane costs just about Rs 34 per kg, while it is a shade under Rs 40 in the countryÂ’s capital – Delhi, reports indicate.
In other cities of Gujarat, CNG prices are between Rs 52 and Rs 57 per kg, which is higher than each of these cities.
Therefore, the state government is demanding allocation of domestic gas to city gas distribution companies in the state.
The government claims that it would bring down gas prices in the state by at-least 30 percent if companies in Gujarat are allocated domestic gas as CGDs in Mumbai and Delhi are.
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