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PNGRB Price Order: Regulator Tells CGD Firms To Charge One PNG Rate; Warns Against Misuse Of Subsidised Gas
India’s petroleum regulator has directed city gas distributors to charge a uniform rate for piped natural gas (PNG) supplied to household kitchens, regardless of usage volume. The move comes amid concerns that a tiered pricing system adopted by some firms may be encouraging misuse of subsidised gas and leading to unfair charges for genuine consumers.
In a recent notice, the Petroleum and Natural Gas Regulatory Board (PNGRB) said it had observed that “certain city gas distribution (CGD) entities are implementing a telescopic pricing structure for PNG domestic consumers, wherein the per SCM (Standard Cubic Metre) price of natural gas escalates as consumption surpasses a predefined threshold.”
As per news agency PTI, the regulator called the practice “incorrect” and said such pricing “may inadvertently facilitate the unauthorised use of subsidised administered price mechanism (APM) gas by commercial consumers, who may be misclassified as domestic consumers.”
Natural gas allocated under APM is priced lower than market rates and is meant strictly for households and transport use. Commercial users such as restaurants and hotels are required to buy gas at market rates. PNGRB said that CGD firms are allocated APM gas “at a concessional rate compared to market or spot LNG prices” to promote wider adoption of cleaner fuel.
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