Congress opposes CNG price hike in Gujarat

By IANS
Thursday, February 18, 2010

GANDHINAGAR - The public sector owned Gujarat State Petroleum Corporation’s (GSPC) decision to raise the price of compressed natural gas (CNG) by Rs.1.75 came in for criticism from the Congress opposition here Thursday.

“There is an immediate need to reduce the price of CNG and instead the government has encouraged its public sector corporation to impose a back-breaking burden on the people of the state,” Leader of Opposition in the state assembly Shakti Sinh Gohil said in a statement here.

The increase by the GSPC from Wednesday which takes the price of the fuel to Rs 29.75 per kg comes after Adani Energy, Gujarat Gas and Hindustan Petroleum COrporation Ltd had hiked their retail price of the fuel late last year, crossing the Rs.30 mark per kg.

The Congress, however, alleged that the increase has been affected to benefit Adani Energy at the cost of the public by a state government that has constantly been holding the central government responsible for the price rise.

“The centre supplies CNG to the state at a mere Rs.8.35 per kg while the state charges over Rs.30 per kg for the fuel from the public. In neighbouring Maharashtra, CNG is priced for the public at only between Rs.23 to Rs.24.65,” Gohil said.

Filed under: Economy

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