Gandhinagar: In a step to provide electricity to Gujarat citizens at lower rates, Energy and Petrochemicals Minister Kanubhai Desai announced that the state government has decided to reduce the fuel surcharge by 15 paise per unit starting July 2025.

As per the decision, from July 1, 2025, the fuel surcharge on electricity consumption for all categories of consumers will be collected at a reduced rate of Rs. 2.30 per unit. This rate will remain in effect until any changes are made by the Gujarat Electricity Regulatory Commission (GERC). The reduction in the fuel surcharge is expected to benefit approximately 1.75 crore consumers in the state, saving over Rs. 400 crore on electricity bills between July and September 2025, the Minister added.

Providing further details, the Minister said that, in line with the state government’s commitment to making electricity more affordable, significant reductions have been applied in recent years in the Fuel and Power Purchase Price Adjustment (FPPPA), reflecting effective management of electricity procurement costs and easing the financial burden on consumers.

From January 2024, the fuel surcharge rate was reduced by 50 paise per unit, from Rs. 3.35 to Rs. 2.85. Extending this relief further, from October 2024, the rate was reduced by another 40 paise to Rs. 2.45 per unit. During the first quarter of 2025-26 (April to June 2025), the fuel surcharge rate remained at Rs. 2.45 per unit.

The Minister added that, considering efficient electricity procurement management, stable purchase rates, strong financial administration, and improvements in infrastructure and monitoring to reduce technical and commercial losses, the state government has now decided to further reduce the current fuel surcharge by 15 paise per unit. DeshGujarat