Ukraine – Russia war: VGL increases gas price by Rs. 8.05 per unit

Vadodara: Vaddoara Gas Limited (VGL) has implemented a price-hike of Rs 8.05 per unit in piped gas, with effect from 1st April in line with increase in gas price globally, following growing demand and Ukraine – Russia war.

The price of the piped gas has increased to Rs 43.70 per unit from the previous price of Rs 35.65, after the implementation of price-hike. Total 2 lakh customers will face a charge of Rs 8,85,500 daily and Rs 32.32 crore annually, due to the price hike.

VGL had implemented a price-hike of Rs 6.04 on 25th March, in force from 1st March. The price of piped gas to be considered for the bills of March and April months will be Rs 39.67 per unit. It is the average of the prices in-force in both months which are Rs 35.65 in March and Rs 43.70 in April.

The usage of piped gas by the commercial customers is 40 thousand cubic meters daily and by the household customers is 1,10,000 cubic meters daily. There is no price hike in piped gas for the commercial customers.

Due to the price-hike, the piped gas will be costlier than the LPG cylinder, as per an estimate. An LPG cylinder costs Rs 955.50 at present and it has 14.2 kgs of gas. The cylinder can be used for 25 to 30 days for a family of 5 persons. On the other hand, if the family of 5 members used 40 units of piped gas in a month, then the monthly bill will be around Rs 1311. So, the monthly bill of piped gas is around Rs 356 more than the LPG cylinder price.