Power Minister Sushil Kumar Shinde on Thursday said that power tariff would go up by about Re 1 per unit (kwh) owing to the government’s decision to hike gas prices last evening.
“The power tariff would go up. We have not worked out the details, but it is likely to be about Re 1 per unit,” Mr. Shinde told reporters on the sidelines of a FICCI event.
Power tariff is regulated by the Central Electricity Regulatory Commission (CERC).
On Wednesday, the government had raised natural gas prices by more than double -- to $ 4.20 per mmBtu.
The Cabinet also hiked the price of gas sold to power, fertiliser and city gas projects from Rs 3,200 per thousand cubic metres ($ 1.79 per million British thermal unit) to Rs 6,818 per thousand cubic metres ($ 3.818 per mmBtu), Information and Broadcasting Minister Ambika Soni said in a cabinet briefing.
The new gas rate would result in 2.75 per cent increase in power tariff on an overall basis, and up to 20 per cent hike in the price of compressed natural gas (CNG) for automobiles.
CNG currently costs Rs 21.90 per kg in Delhi.