GSPC slashes gas price by 10% to March this year

Vol 6, PW 22 (15 Jan 03) News in Brief

Gujarat Petroleum has slashed its gas prices for customers by 10% for the three months to March 2003.

On 4th January GSPC sent a letter to all its customers announcing a "special discount" for the three-month period. "No reason was given for the unilateral discount," reveals a source.

"Nobody knows why they gave the discount. It must have been the result of some populist whim by (chief minister) Modi after his election victory." GSPC tells us it hopes the discount will "encourage customers to pay promptly." It will now charge $3.11 per thousand cubic feet of gas against the earlier $3.45 per thousand cubic feet.

Expect BG subsidiary Gujarat Gas to follow suit with a price cut. The price discounts is expected to hit Gujarat Petroleum's revenue.