The Petroleum and Pure Gasoline Regulatory Board (PNGRB) has proposed an overhaul of the mechanism of fixing tariffs for supplying pure fuel with the intent to make the commodity aggressive for transport and family consumption in a bid to spice up consumption.
Since 2020, the regulator has made amendments to spice up funding and fuel consumption in far-flung areas. These included Unified Tariff (underneath three zones), Built-in Tariff, System Use Gasoline (SUG) based mostly on normative volumes with capping at 2 per cent, Quantity ramp up in 10 years instead of 5 years, and many others.
In one more reform for bringing investments and to extend fuel consumption particularly in compressed pure fuel (CNG) and domestic-piped pure fuel (D-PNG) in India, PNGRB has introduced a proposal for amending the PNGRB (Dedication of Pure Gasoline Pipeline Tariff) Laws, 2008, it mentioned in a press release.
It has floated a Public Session Doc for searching for feedback from stakeholders on varied features of pure fuel pipeline (NGPL) tariff laws.
These embrace lowering unified tariff zones to 2 from three, levying zone one unified tariff to all of the CNG and D-PNG prospects, incentivising remoted community operators/ pipelines, equal distribution of advantage of volumes past normative threshold with shoppers and pipeline operators, and many others.
“The assorted proposals will increase investments in fuel infrastructure particularly in remoted and distant areas which can faucet the remoted fuel. Additional the amendments may also assist in growth of CNG and D-PNG connections within the far-flung areas and profit main stakeholders, CGD Sector, Transmission Operator, Customers in remote areas and can increase the funding within the fuel infrastructure,” PNGRB famous.
Zones & tariffs
The regulator has proposed to cut back the unified tariff zones from three to 2. Earlier, it had divided the nation into three zones—as much as 300 km, 300 to 1200 km and past 1,200 km.
Now the PNGRB has proposed that the second zone for unified tariff will embrace the remaining size of the nationwide fuel grid system on both aspect of the primary tariff zone of the nationwide fuel grid system.
Earlier, the unified tariff for the three unified tariff zones was decided by the Board with tariffs for the primary zone mounted at 52.5 per cent and 75 per cent for the second tariff zone.
Nevertheless, PNGRB proposes {that a} unified tariff for the 2 unified tariff zones can be decided by the Board in a way that the tariff for the primary tariff zone for unified tariff can be 66.17 per cent of the tariff for the second tariff zone.
The regulator additionally proposed that for CNG and PNG-D shoppers tariffs can be charged as per the primary zone of unified tariffs, which can assist in enhancing CGD quantity consumption as areas away from the fuel supply won’t need to pay the next value for the commodity.
