Gujarat Gas bullies Charotar Gas in CNG fight

Vol 20, PW 7 (15 Dec 16) Midstream & Downstream

Nobody likes a bully which is why not-for-profit retailer Charotar Gas says it will fight hard to stop BSE-listed Gujarat Gas from shoving it around.

Charotar is outraged Gujarat Gas is callously ignoring its pleas to return a CNG station in what it claims is a grave violation of PNGRB rules. Charotar sent a legal notice to Gujarat Gas on December 7, confirms a company source.

This was not long after Charotar chairman Kiran Patel wrote a sternly worded letter to GSPC chairman and managing director JN Singh on November 24. Patel threatened that by December 23 he will close down the station located at the Janata Crossing near Charotar's head office in Anand town.

Charotar had signed an agreement in 2009 with GSPC Gas (now merged with Gujarat Gas) to run the station after agreeing Rs1 ($0.01) commission for every kg of CNG sold. But after Charotar received its PNGRB marketing licence for Anand on May 12, 2015 it asked for the station back.

"No gas retailer can operate in an area authorised to another," confirms a PNGRB source. "Charotar's authorisation means Gujarat Gas must no longer operate this station." Charotar has given Gujarat Gas three months grace from when their agreement ran out on September 23, 2016 but claims Gujarat Gas has ignored countless letters sent since May 2015.

When contacted a senior Gujarat Gas source promised to call back but didn't.