The revised price will took effect at midnight on Saturday. Gujarat Gas announced a price hike of INR 1.5 per kg for CNG from December 1, reported TOI. The new price will be Rs 77.76 per kg across the state.
The company informed its franchise owners about the increase through a letter issued on Saturday. This marks the third price hike in recent months, following a Re 1 increase in July and another Re 1 rise in August.
The revised price will took effect at midnight on Saturday. The change is expected to impact over four lakh CNG vehicle users in South Gujarat, with the region having around 250 CNG pumps, including 60 in Surat alone, noted TOI.
Auto-rickshaws and school vans are major consumers of CNG in the area, and the price hike is likely to lead to a rise in school van charges, as operators had previously increased fares following earlier CNG price hikes.
De-erger profits in the pipeline Meanwhile, Gujarat Gas announced in September reverse merger with Gujarat State Petroleum Corporation (GSPC) and Gujarat State Petronet Ltd (GSPL) to simplify the company's shareholding structure. The merger is expected to increase Gujarat Gas’s earnings per share (EPS) by 5-7%, after adjusting for equity dilution from the issuance of new shares.
The transaction is set to be completed by August 2025.
The restructuring will involve the merger of GSPC, which holds a 37% stake in GSPL, and GSPL, which owns 54% of Gujarat Gas. The merger will lead to a 36% equity dilution, increasing Gujarat Gas's outstanding shares from 688 million to 938 million.
The Gujarat government’s stake in Gujarat Gas will drop from 60.9% to 25.9%, with other Gujarat government entities holding around 29% of the shares, while minority shareholders will hold the remainder.
