Gujarat Gas hikes industrial gas price to Rs 40.83 per scm

State-run Gujarat Gas Limited on Sunday announced a Rs 2.50 price hike in industrial gas — to Rs 40.83 per standard cubic metre (scm) from the current Rs 38.43 per scm, sources told CNBC-TV18. The new price will be effective from Monday, August 21.

This is the first price increase for industrial gas by Gujarat Gas after five consecutive price cuts in 2023. According to sources, the price increase is due to increased spot liquefied natural gas (LNG) prices.

Earlier this month, Gujarat Gas reported a 43.4 percent year-on-year (YoY) decline in net profit at Rs 215.1 crore for the first quarter of the ongoing fiscal. In its quarterly earnings report, the company said its industrial sales volumes increased to 5.88 mmscmd (million metric scm per day) from 5.36 mmscmd in the preceding quarter — an increase of 10 percent. This was due to softer spot LNG prices, the benefit of which was passed to industrial customers to make natural gas more competitive to alternate fuels, the company had said.