Gujarat State Reduces Fuel Surcharge By 19 Paise Per Unit

Chief Minister Vijay Rupani reduces fuel surcharge by 19 paise per unit “Consumers of State Electricity Companies to get relief of about Rs.356-crore during three months,” says Energy Minister Saurabhbhai Patel.

The consumers will be charged Rs.1.81 per unit as fuel surcharge from October to December 2020. 

The Energy Minister said that in addition to the energy charge, a fuel surcharge is levied on the electricity bill from the consumers who consume the electricity.

As part of the Gujarat Government led by Chief Minister Vijay Rupani’s several decisions in favor of the consumers, it has reduced the fuel surcharge on electricity by 19 paise per unit for consumers of the State Electricity Companies. It will provide relief of Rs.356-crore to 1.40 crore consumers, said Energy Minister Saurabhbhai Patel here today. 

While the fuel surcharge is levied from the consumers as per the formula fixed by the Gujarat Electricity Regulatory Authority over and above the energy charge in the electricity bills. the four Electricity Distribution Companies under the Gujarat Urja Vikas Nigam Limited had charged Rs.2.00 per unit as fuel surcharge during the last quarter from July to September 2020.

Reduces Fuel Surcharge By 19 Paise Per Unit

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Gujarat Energy Development Corporation Limited was Reduces Fuel Surcharge By 19 Paise Per Unit.

Against this, fuel surcharge has to be levied at the rate of Rs 1.81 per unit during the October-December 2020-December 2020 period has been born.

Minister Patel added that the main reason for the reduction in fuel surcharge is that during this quarter, the state government has purchased gas at cheaper rates in the interest of consumers and has produced gas-based electricity which has reduced the cost of power generation. This means that more than 1.50 crore consumers will get this benefit directly, which will reduce their electricity bills and reduce their bills, he added.

The Minister said the State Government decided to reduce the fuel surcharge by 19 paise per unit owing to cheaper availability of coal in the international market and easy availability of gas to the State Government, providing relief of about Rs.356-crore to the 1.40-crore consumers.

In other words, during the quarter from October 2020 to December 2020, the fuel surcharge has to reduce Rs 1.31 per unit. Due to this reduction in availability, power consumers will get a relief of around Rs 3 crore. This means that around 1.50 crore customers will get this direct benefit, which will reduce their electricity bills and reduce their bills, he added.