Gujarat Gas Announces Rs 2.3/scm Price Hike For Industrial Gas

Gujarat Gas Ltd, a state-run gas distribution company, has announced a Rs 2.3 per standard cubic meter (scm) increase in industrial gas prices, with the new rate set at Rs 45.6/scm. This price adjustment will take effect from November 1, 2023. The company attributes this move to the recent surge in spot liquefied natural gas (LNG) prices.

The increase brings the propane price equivalent to Rs 42.2/scm, making propane a marginal discount to natural gas. This shift is a result of the government's decision to eliminate the additional import duty on propane, effective since September 1, 2023, which had been imposed in July earlier this year.

This announcement follows a previous price hike implemented by Gujarat Gas on September 1, when gas prices for customers in Morbi, Gujarat, were raised for the second time within a fortnight, resulting in a rate of Rs 43.3/scm. Before that, in August, the company had announced a Rs 2.5 price increase for industrial gas, reaching Rs 40.83/scm.

In addition to the pricing updates, the company's financial performance in the first quarter of this fiscal year raised concerns, as it reported a significant 43.4% decline in net profit, plummeting from Rs 382 crore to Rs 215.1 crore compared to the same period in the previous year.