After announcing a cut in CNG prices by Rs 15 per kg and piped cooking gas (PNG) by Rs 5 per unit on February 3 with immediate effect, it has now come to light that the implementation will take another 10 to 15 days as the Government needs to work out the modalities of executing the pre-poll freebie.
Since the schedule for lok Sabha elections is likely to be announced soon after the ongoing Winter Session ending on February 21, the Petroleum Ministry is racing against time to complete the modalities. The Petroleum Ministry had earlier this week issued an order increasing the domestic natural gas quota for CNG and PNG sectors from the existing 80 per cent to 100 per cent, on the basis of which it had announced the sharp decrease in CNG and PNG prices.
However, to implement the price cut decision, GAIl is required to sign agreements with various regional suppliers of CNG and PNG afresh and this exercise will take another 10 to 15 days before the reduced price regime can actually come into effect.
Sources close to the development told The Pioneer that GAIl, which has been given the task of ensuring enhanced gas supplies from fields operated by ONGC and Oil India ltd (OIl) to CNG (transport) and PNG (piped cooking gas) segments is involved in fine-tuning its existing agreements with various State entities, which are mostly its own joint venture (JV) partners. To ensure enhanced gas supply to the two sectors, the agreements between GAIl and its JV partners need to be revised and this is a time consuming exercise, sources added.
While GAIl supplies natural gas for CNG as well as PNG usage, it does so through its joint venture (JV) partners across the country like GAIl Gas ltd (GGl in various cities across the country), Central UP Gas ltd (in select cities situated in Uttar Pradesh), Aavantika Gas ltd (AGl in Madhya Pradesh), Bhagyanagar Gas ltd (BGl, in Gujarat), Mahanagar Natural Gas ltd (MNGl) in Tripura, Natural Gas Company ltd (TNGCl in Agartala), and Mahanagar Gas ltd (MGl in Goa), among others.
The rate cut announced by the Government is likely to provide instant relief to consumers in around 50 cities like Delhi, Ahmedabad, Sonepat, Panipat, Meerut, Bareli, Indore, Surat and Hyderabad.