Gujarat high court directs centre to stop differential CNG pricing for Ahmedebad

In what could possibly trigger a fall in CNG prices in Ahmedabad, the Gujarat high court yesterday directed the centre that the city be allocated gas at the same price at which it was being supplied to Delhi and Mumbai under the Administered Price Mechanism (APM).

Welcoming the high court order, the state government described it as a victory for the people of the state, and promised a reduction of Rs10 per kg in CNG prices with immediate effect, if it was supplied gas as per APM. The price of piped gas, supplied to thousands of households in the city, would also fall as a result of the verdict.

Acting on a writ petition filed by the Drangadhra Prakrutik Mandal, a division bench of chief justice Bhaskar Bhattacharya and justice JB Pardiwala directed the centre to implement the order immediately.

''The existing policy of natural gas allocation is not in conformity with the Supreme Court guidelines,'' the bench said in its order.

The court asked the centre to supply gas to Ahmedabad at the same price as Delhi and Mumbai, enforcing the right of equality. The court also refused to grant a stay and allow the central government to approach the Supreme Court.

The price of CNG in Ahmedabad is Rs53 per kg, while it is priced at a little over Rs38 in Delhi and Rs34 - 35 in Mumbai.