Gujarat Exclusive > Gujarat news > Power bill relief: Guj reduces fuel surcharge for electricity by 16 paise per unit

Power bill relief: Guj reduces fuel surcharge for electricity by 16 paise per unit

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Energy minister Saurabh Patel on Tuesday announced that the government has reduced the fuel surcharge for electricity consumers in the state by 16 paise per unit . The decision is likely to positively impact 1.30 crore customers and save them Rs310 crore by way of surcharge. Patel said that the move has been made by the state government to help ease the burden of electricity bills on consumers in the state.

The fuel surcharge is charged from the customers in addition to the electricity usage bill and is based on a formula decided by the Gujarat Electricity Regulatory Commission.

The fuel surcharge for the first quarter of this year was Rs2.06 paise per unit while it will be Rs1.90 paise per unit in the second quarter that begins from April and ends in June. The state in a release said that it was able to reduce the surcharge as it was able to buy natural gas at reduced price and the use of the fuel in generating electricity has resulted in reduced cost of electricity production . The drop in crude prices has also helped the country and state in procuring oil and gas at reduced price to meet its energy demand.