RIL gas to cost one-third less
Cooking gas is priced ranging between Rs 300 a cylinder to Rs 288, RIL plans to bring it for Rs 240.
By TNN |
Reliance Industries (RIL) is planning to bring it piping hot right into your kitchen. And with a price tag which could change the game of domestic cooking gas business altogether. The company has applied for city gas distribution licenses in 100 cities in the country and plans to supply gas at one-third less than the subsidised price of liquefied petroleum gas (LPG) being supplied by oil PSUs today.
Speaking at the sidelines of the India Economic Summit, RIL chairman and managing director, Mukesh Ambani said, “Our gas would cost one-third less of LPG.” Consumers today buy cooking gas at prices ranging between Rs 300 a cylinder to Rs 288 depending on the sales tax structure in the state. Back-of-the-envelope calculations show that piped gas of a similar quantity (one cylinder is equivalent to 14.2 kgs of LPG) would be available for Rs 240.
The government has kept cooking gas prices at this highly subsidised level for almost two years but prices will need to be rationalised with time as global prices are far higher than the domestic retail price. Consumers today buy cooking gas at a retail price which is subsidised by as much as Rs 120 per cylinder.
RIL has applied for city gas distribution licence in 100 cities. Reliance is planning to begin gas production from the first quarter of 2008. The company has applied to the government and is hoping to set up a pan-Indian gas distribution network which would cover major cities in Tamil Nadu, Andhra Pradesh, West Bengal, among others. The first plans are expected to roll out in the major cities in these states like Chennai, Hyderabad, Bangalore, Mangalore, Vijaywada, Kolkata among others.
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