PNGRB introduces implementation of Unified Tariff-a much awaited reform in natural gas sector

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The Petroleum and Natural Gas Regulatory Board (“PNGRB”) has amended PNGRB (Determination of Natural Gas Pipeline Tariff) Regulations to incorporate the regulations pertaining to Unified Tariff for natural gas pipelines with a mission of “One Nation, One Grid and One tariff”. 

Based on the regulations, PNGRB has notified a levelized Unified Tariff of Rs.73.93/MMBTU and created three tariff zones for Unified Tariff, where the first zone is up to a distance of 300 kms from gas source, second zone is 300 – 1200 kms and third zone is beyond 1200 kms. The Zonal unified tariffs will be effective from 1st April 2023 and details of the same are webhosted on the PNGRB’s website(www.pngrb.gov.in). 

The national gas grid covers all the interconnected pipeline networks owned and operated by entities viz. Indian Oil Corporation Limited, Oil and Natural Gas Corporation Limited, GAIL (India) Limited, Pipeline Infrastructure Limited, Gujarat State Petronet Limited, Gujarat Gas Limited, Reliance Gas Pipelines Limited, GSPL India Gasnet Limited and GSPL India Transco Limited. With commissioning of newer interconnected pipelines, the national gas grid will keep expanding for Unified tariff. These entities will get the tariff as per their entitlement while customers would pay Unified tariff. The difference between the same will be settled between the Pipeline entities for which a settlement mechanism has been notified. 

The reform will specially benefit the consumers located in the far-flung areas where currently the additive tariff is applicable and facilitate development of gas markets and vision of government to increase the gas utilisation in the country.

About PNGRB:

The Petroleum and Natural Gas Regulatory Board (PNGRB) was constituted under The Petroleum and Natural Gas Regulatory Board Act, 2006 (NO. 19 OF 2006) notified via Gazette Notification dated 31st March, 2006.

The Act provide for the establishment of Petroleum and Natural Gas Regulatory Board to protect the interests of consumers and entities engaged in specified activities relating to petroleum, petroleum products and natural gas and to promote competitive markets and for matters connected therewith or incidental thereto.

Further as enshrined in the act, the board has also been mandated to regulate the refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas excluding production of crude oil and natural gas so as and to ensure uninterrupted and adequate supply of petroleum, petroleum products and natural gas in all parts of the country.

PNGRB

About PNGRB

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