PNGRB Overhauls Gas Tariff System for Greater Accessibility and Investment

The Petroleum and Natural Gas Regulatory Board (PNGRB) has proposed a new tariff system for gas pipelines to attract investments and boost gas consumption, especially in CNG and domestic piped natural gas sectors. The new zonal tariff system aims to make natural gas more affordable by reducing cost disparities.

In a momentous shift in regulatory norms, India's Petroleum and Natural Gas Regulatory Board (PNGRB) has unveiled a comprehensive proposal to restructure pipeline tariffs for transporting natural gas. The initiative seeks to stimulate investment and enhance gas consumption, particularly in CNG and domestic piped gas sectors.

The board has issued a public consultation document addressing zonal tariffs, highlighting a transition from three zones to two. The aim is to resolve pricing discrepancies resulting from distance, making gas affordable across locations by applying zone-1 tariffs to all domestic and vehicular gas users.

This move is poised to bolster infrastructure investment, encourage competitive gas pricing against traditional fuels, and significantly expand gas accessibility. The policy is expected to promote sustainable energy development, especially in isolated and remote regions, fostering a more connected national energy grid.

(With inputs from agencies.)