State-owned Gujarat State Petroleum Corporation (GSPC) has filed a contempt of court petition in the high court against the Gas Authority of India Limited (GAIL) for not supplying the agreed quantity of CNG.
Gujarat Energy Minister Saurabh Patel said the state had planned to cut the CNG prices, banking on the agreement with GAIL, but there was a 9 per cent shortfall following which the GSPC was making a heavy loss.
The state government has also stated that the Centre is supplying natural gas to the state from the Panna-Mukta-Tapti fields, which is expensive, instead of the Administered Price Mechanism (APM).
Last week, the state government reduced prices of CNG by Rs 10.10 per kg and Piped Natural Gas (PNG) by Rs 2 per standard cubic metre after signing the agreement with GAIL.
Earlier, A PIL had been filed by Dhrangadhra Prakurtik Mandal alleging discrimination in supply of natural gas to Gujarat, compared to Mumbai and Delhi.
The Gujarat High Court in July, 2012 asked the Centre to provide natural gas under the APM, at the same rate as Delhi and Mumbai. Supreme Court had upheld the order.
GAIL's subsequent agreement with Gujarat was approved by the High Court.
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