PNGRB fixes unified tariff for natural gas pipelines at Rs 73.93/MMBTU

New Delhi: 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 levelised 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 300–1,200 kms and third zone is beyond 1,200 kms. The zonal unified tariffs will be effective from April 1, 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 like Indian Oil Corporation Limited (IOCL), Oil and Natural Gas Corporation Limited (ONGC), 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 the commissioning of newer interconnected pipelines, the national gas grid will keep expanding for the 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," said the PNGRB.

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

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