Vadodara Gas Limited (VGL) has increased the prices of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) by Rs 2 with effect from June 1, citing a rise in gas procurement costs.
The company attributed the price revision to reduced allocation of lower-cost domestic natural gas and a growing dependence on costlier gas sourced from the open market. According to VGL, recent reductions in APM/NAPM natural gas allocations by the central government have compelled city gas distributors to procure a larger share of their requirements at significantly higher market rates.
VGL said it had absorbed the additional burden for some time but was eventually required to revise tariffs to ensure the sustainability of operations and uninterrupted gas supply.
Under the revised rates, the price of CNG has been increased from Rs 83.95 per kg to Rs 85.95 per kg.
Domestic PNG tariffs have also been raised from Rs 51.74 per standard cubic metre (SCM) to Rs 53.74 per SCM, while commercial PNG rates have been revised from Rs 69.50 per SCM to Rs 71.50 per SCM.
The company stated that the hike is relatively modest compared to the actual increase in procurement costs and was implemented after carefully balancing consumer interests with operational requirements.
VGL added that despite the revision, CNG and PNG continue to remain economical, environmentally friendly and safer alternatives to conventional fuels.