Adani Gas Ltd on Wednesday announced reduction in prices of compressed natural gas (CNG) and piped natural gas (PNG) used for cooking in household kitchens, in line with a cut in raw material rates.
The firm, which retails CNG to automobiles in some districts of Haryana, Gujarat, Rajasthan, Madhya Pradesh, and Uttar Pradesh, cut CNG rates between Rs 1.5 per kg to Rs 3.6 per kg.
The rate of natural gas piped to household kitchens for cooking purposes has been cut by Re 1 per standard cubic meter (scm), the company said in a statement.
Adani Gas said while CNG price in Mahendragarh district of Haryana has been cut by Rs 3.6 per kg to Rs 54.20 per kg, the reduction in Faridabad and Palwal districts of the states will be Rs 2.75 per kg to Rs 48.02 per kg.
In Khurja district of Uttar Pradesh as well as Ahmedabad and Vadodara in Gujarat, the reduction would be Rs 2.75 per kg.
The lowest reduction of Re 1.5 is in Bhind in Madhya Pradesh and Jhansi in Uttar Pradesh where the CNG will now cost Rs 63.40 per kg.
Adani Gas said PNG price in Haryana and Gujarat has been cut by Re 1 per scm to Rs 29.84 per scm and Rs 29.09 per scm respectively.
Indraprastha Gas Ltd (IGL) had last week cut CNG price in Delhi by Rs 3.20 to Rs 42 per kg. In adjoining Noida, Greater Noida and Ghaziabad, the reduction by IGL was Rs 3.60 to Rs 47.75 per kg.
IGL had also announced cut in domestic piped natural gas prices by Rs 1.55 per scm to Rs 28.55 per scm in Delhi. IGL's PNG in Noida, Greater Noida and Ghaziabad would cost Rs 28.45 per scm, a reduction of Rs 1.65 per scm from Rs 30.10.
The reductions by Adani Gas and IGL follow the government cutting the price paid for natural gas produced from domestic fields by 26 per cent to USD 2.39 per million British thermal unit effective April 1.
Natural gas gets converted into CNG on compression and is also supplied for lighting cooking stoves through pipes.
"With the reduction in our already attractive CNG prices, our consumers shall now accrue much higher savings as compared to petrol and diesel (up to 50 per cent savings over petrol in some geographical areas)," Adani Gas said.
"This will encourage all residents in our geographical areas to convert their vehicles to environmentally friendly CNG and contribute to reducing our carbon footprint," it added.
Headquartered in Ahmedabad, the company has already set up city gas distribution networks in Ahmedabad, Vadodara in Gujarat, Faridabad in Haryana and Khurja in Uttar Pradesh.
Additionally, it has commenced commercial operations in areas that it had won in recent city gas licensing rounds -- Porbandar, Kheda, Surendranagar, Barwala, Navsari in Gujarat, Udaipur in Rajasthan, Bhind in Madhya Pradesh, Jhansi in Uttar Pradesh and Palwal in Haryana.
In addition, the firm's joint venture with Indian Oil Corp (IOC) has already commenced its commercial operations in the cities of Prayagraj, Chandigarh, Ernakulam, Panipat, Daman, Dharwad, Udhamsingh Nagar, and Bulandshahar.
"The reduction in CNG prices is Rs 3.60 per kg in Mahendragarh geographical area in Haryana. In Faridabad and Khurja areas the reduction is Rs 2.75 Rs per kg, whereas reduction in Ahmedabad/ Vadodara areas in Gujarat is Rs 2.25 per kg," the statement said. "The reduction in domestic PNG prices is Rs 1.0 per SCM across all our geographical areas.