VGL hikes CNG, PNG tariffs by Rs 2 amid rising gas procurement costs

Vadodara: Vadodara Gas Limited (VGL) has announced a marginal increase in CNG and PNG tariffs with effect from June 1, citing a sharp rise in gas procurement costs following reduced allocation of cheaper domestic natural gas and higher dependence on costlier market-sourced gas.

According to the company, the central government has recently curtailed the allocation of APM/NAPM natural gas, compelling city gas distributors to source a larger share of their requirements from the open market at significantly higher prices. VGL said it had absorbed much of the increased cost burden for an extended period, but the latest hike had made a tariff revision unavoidable.





Under the revised rates, CNG will cost Rs 85.95 per kg, 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, while commercial PNG consumers will now pay Rs 71.50 per SCM against the earlier Rs 69.50 per SCM. The revision represents a uniform increase of Rs 2 across all categories.

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.

The company provides CNG and PNG services across Vadodara and Chhota Udepur districts and 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.