Blame China for higher CNG, PNG prices

If you are among those who are impacted by the hike in prices of CNG and PNG, blame it on China. Higher gas demand from the world’s second-largest economy has resulted in a sharp rise in global LNG prices, which in turn, has led to the steep increase in retail gas prices.

Adani Gas, which distributes gas in Ahmedabad and Vadodara, hiked natural gas prices between 4 and 18% from January 2. CNG prices were revised from Rs45.95 per kilo to Rs47.80, whereas domestic PNG (piped natural gas) price was changed from Rs529.15 per cubic metre to Rs560.65 per cubic metre. The hike in industrial, commercial and non-commercial segments was even higher.

Similarly, state-owned Gujarat Gas had hiked gas prices for industrial consumers from Rs26.59 to Rs29.17 per cubic metre from December 23, an increase of just under 10%.

Both companies attributed the hike in prices to the spike in international gas prices.

“Spot LNG prices have gone up sharply in recent months, and we have only passed on the hike to consumers. Moreover, the revision in prices was due since long,” said a senior official of Adani Gas, requesting anonymity.

Incidentally, Adani Gas had revised CNG and domestic PNG price in October, but had …read more