Relief in electricity bills as Gujarat govt reduces fuel surcharge, 1.75 crore consumers to benefit

The Gujarat government on Tuesday reduced 15 paise per unit in fuel surcharge on electricity consumption, effective from July 2025 which may give relief to electricity bills.

Energy and Petrochemicals Minister Kanubhai Desai said that in order to provide electricity to the citizens of Gujarat at lower rates, the state government has decided to reduce the fuel surcharge rate by 15 paise per unit from July 2025. Now, a surcharge of ₹2.30 per unit will be applicable. 

For consumers using up to 200 units of electricity, their bills will come down by around ₹30–35. From January 2024, the fuel surcharge rate was reduced by 50 paise per unit, bringing it down from ₹3.35 to ₹2.85. Extending this relief further, from October 2024 the surcharge was reduced by another 40 paise, bringing it to ₹2.45 per unit. In the first quarter of financial year 2025–26 (April to June 2025), the surcharge was maintained at ₹2.45 per unit.

As a result of the reduction in fuel surcharge, around 1.75 crore consumers across the state will collectively benefit by over ₹400 crore on their electricity consumption during July to September 2025, Desai stated.

Customers of private power companies, including Torrent Power, will also benefit from the reduced surcharge, and this rate will remain applicable unless changed by the Electricity Regulatory Commission.