Vadodara Gas Limited (VGL) has declared a marginal increase in its compressed natural gas (CNG) and piped natural gas (PNG) tariffs, effective from June 1. The company attributed this revision to a sharp rise in gas procurement costs, following a reduction in the allocation of cheaper domestic natural gas and an increased reliance on costlier market-sourced gas.
Reason Behind the Tariff Revision
According to VGL, the central government recently curtailed the allocation of APM (Administered Price Mechanism) and NAPM (New Administered Price Mechanism) natural gas. This has compelled city gas distributors like VGL to source a larger share of their requirements from the open market at significantly higher prices. The company stated that it had absorbed much of the increased cost burden for an extended period, but the latest hike made a tariff revision unavoidable.
Revised Tariffs
Under the new rates, CNG will cost Rs 85.95 per kilogram, up from Rs 83.95 per kg. Domestic PNG tariffs have been increased from Rs 51.74 per standard cubic metre (SCM) to Rs 53.74 per SCM. Commercial PNG consumers will now pay Rs 71.50 per SCM, compared to the earlier Rs 69.50 per SCM. The revision represents a uniform increase of Rs 2 across all consumer categories.
Company's Assurance
VGL maintained that the tariff hike is modest and substantially lower than the actual increase in gas procurement costs. The company said the decision was taken after carefully balancing consumer interests with the need to ensure uninterrupted gas supplies. Despite the revision, VGL asserted that CNG and PNG continue to be economical, environmentally friendly, and safer alternatives to conventional fuels.
Service Area and New Connections
The company provides CNG and PNG services across Vadodara and Chhota Udepur districts. It reiterated its commitment to ensuring reliable and quality gas supply to consumers. New PNG connections can be applied for through VGL’s online platform as well as its customer service centres.
