Uniform pricing for CNG likely in 2 months

Ministry plans to pool domestic, imported gas used by CNG networks across the country

The ministry of petroleum and natural gas is set to come up with a proposal to have uniform Compressed Natural Gas (CNG) pricing across the country.

“We are working on a proposal to make CNG prices uniform across the country," said a senior ministry official. The plan by the ministry is to pool in domestic and imported gas used by CNG networks across the country. The ministry is expected to finalise a mechanism for this within the next two months.

The move would remove price differences in major cities like Delhi or Mumbai and in smaller cities like Ahmedabad.  While the current CNG price in Mumbai is Rs 38.95 per kg, it is Rs 45.6 per kg in Delhi and Rs 66.3 a kg in Ahmedabad.

Early this month, the Supreme Court had directed the Centre to allocate natural gas to Ahmedabad at the same price at which it is supplied to Delhi and Mumbai. In big cities, natural gas is supplied on the Administered Price Mechanism (APM).

The apex court also dismissed a petition by the government challenging a Gujarat High Court order to have uniform pricing. The high court had directed the government not to discriminate between city gas distribution networks run by public sector undertakings and other players.

The petroleum ministry plans to bring 200 cities under a CNG network by 2015.

The ministry had recently come out with a notification, stating that CNG stations would no longer be under the geographic limit of city gas distribution (CGD). However, under the CGD area norm, an operator will get exclusivity for five years for CNG distribution.  

The Petroleum and Natural Gas Regulatory Board has already raised objections to this move taken by the petroleum ministry in consultation with law ministry. “Even after this exclusivity period, CGD operators used to be the only players for CNG in a particular area. Now, with availability of Regasified Liquefied Natural Gas, any player can start a CNG station,” the official added.