Gujarat Gas Ltd Raises CNG Prices,Despite Falling Natural Gas

Gujarat Gas Limited, a company of GSPC Group of Gujarat Government, has hiked the CNG price by Rs 1 per kilogram, despite the decrease of 11.1% in the natural gas prices in the international market in the last one year. The price hike, implemented from Thursday, will affect about 4.21 lakh CNG vehicle owners in south Gujarat including Surat. The GGL has announced a new price of Rs 76.26 per kg. 

According to the figures released by the "Federation of Gujarat Petroleum Dealers Association (FGPDA) on March 1, 2023, there are about 12 lakh CNG vehicles in the state, including commercial vehicles like public transport buses and goods wagons running on CNG, out of which 4 lakh CNG auto rickshaws and about 6 lakh including four-wheelers.

Gujarat Gas is planning to start more than 200 new CNG stations in two years under the FDODO scheme in Surat and south Gujarat region.

The Board of Directors of Gujarat Gas Limited (GGL) had a very important board meeting on 13 February 2024. In this meeting they pushed the recently launched FDODO (Fully Dealer Owned and Dealer Operated) scheme to start new CNG stations.

It has been reported that between 2019 and 2022, sales of CNG-powered passenger vehicles have seen a 310 percent increase. Gujarat Gas Limited (GGL) has more than 815 CNG stations across its operational areas and has sales of 2.78 mmscmd (as on December 2023 quarter) of CNG.

In the next two years, the company intends to commission more than 200 stations in its authorised areas and accordingly aims to become the first urban gas distribution company to set up 1000 CNG stations in the country.

Despite 409.5 crore profit growth in the quarter, CNG customers are paying more.

Gujarat Gas announced results for the quarter ending March 2024. The company reported better-than-expected profit and revenue. The company's profit has increased to Rs 409.5 crore in the fourth quarter of FY 2024. Which in the quarter ended December 2023 Rs. 326 crores. This increase in the company's profit is 25.6 percent. The company's revenue for the quarter stood at Rs. 3,929 crores to Rs. 4,134 crores. In the quarter ended March, the company posted Rs. 591 crores, the company's EBITDA for the quarter ended December 2023 stood at Rs. 591 crores.

In the last four years, the price of CNG has increased from 58 rupees to 75.26 rupees per kg. On the other hand, there is a discussion that the company has planned to increase the commission of the new CNG franchisee pump owners.