Gas distribution companies mull hike

These companies have no option but to increase gas distribution prices, said industry sources.

While Adani Energy is expected to increase prices, the possibility of a price hike by Gujarat Gas is not being ruled out. When contacted, the officials of Gujarat State Gas Corporation (GSPC) said that there is no proposal to increase prices.

"Companies have to bear the cost of procuring imported gas and processing it, which is high. We have no option but to pass on the hike," said a senior executive of a leading gas distribution company.

Companies have already increased their prices within the last three months. Earlier, Adani Energy had increased its prices of PNG to Rs. 20.75 per standard cubic metre effective from April 1, 2008.

Now, the company again plans to jack up prices by around nine percent to Rs. 22.75 per standard cubic metre. Gujarat Gas had increased its prices for CNG by Rs. 2.55 to Rs. 27.50 per kg effective from April 13 this year and subsequently it again increased prices for domestic gas to around Rs. 14 from Rs. 11.74 standard cubic metre effective from May 1.

The chunk of gas is consumed by industrial units and vehicles. At present, Adani Energy provides 2,60,000 cubic metre CNG per day.

Gujarat Gas supplies gas mainly for CNG and for household as well as commercial use.