A day after announcing a hike in the rates of petrol and diesel by increasing the VAT and cess on the fuel, the state government Wednesday announced a reduction in rates of Piped Natural Gas (PNG ) by Rs 5 per cubic metre.
State Energy Minister Saurabh Patel said the reduced rates would benefit around 2,800 small and medium industrial units of the state. He added that from January 1, reduction of Rs 3 per cubic metre of PNG will be implemented, while from April 1, the rates would be cut by further Rs 2 per cubic metre.
With this reduction in price, small and medium industries will save Rs 623 crore on their PNG consumption bill every year, the government said.
Patel said the reduction in PNG prices is a result of the efforts of the state government and officials of Gujarat State Petroleum Corporation (GSPC) during the signing of contract between India’s Petronet LNG Limited and Qatar’s RasGas Company.
Gujarat Gas Limited buys imported Liquified Natural Gas (LNG) and provides the same to its industrial units.