Gujarat seeks parity in gas pricing with Delhi and Mumbai

Gujarat is seeking parity in the price of natural gas provided to it with the rates at which it is given to Mumbai and Delhi, after the GSPC Gas Company (GGC) raised natural gas prices in Gujarat citing non-allocation of cheaper gas by the centre.

GGC, a subsidiary of the state-run Gujarat State Petroleum Corporation (GSPC), today raised CNG prices from Rs50.20 per kg to Rs56.90 per kg and those of piped cooking gas from Rs18.18 to Rs21.50 (Rs24.73 with taxes) per standard cubic metre (pscm).

Chief minister Narendra Modi today met Prime Minister Manmohan Singh and expressed his unhappiness over the centre's refusal to provide gas to the state at the same price at which it is given to Mumbai and Delhi.

GGC supplies gas mostly to industries in South Gujarat region comprising Valsad, Vapi, Umbergaon, Hazira and Halol. It also supplies gas in Gandhinagar, Nadiad, Morbi, Thangadh, Sunredranagar and Rajkot.

"In spite of several representations made by the state government and repeated requests by GSPC Gas Company Ltd, there has been no allocation of any cheaper domestic gas by the central government," an official statement said.

Modi, who submitted a memorandum to the prime minister demanding that that Gujarat be provided gas at the same rate as Delhi and Mumbai, later said the prime minister was supportive of the demand.