Supply PNG to households at a uniform rate, PNGRB tells CGD firms
The oil regulator said this taking note of a telescopic pricing structure for piped natural gas domestic consumers that certain CGD entities are implementing in which the per standard cubic metre (SCM) price of the gas escalates as consumption goes past a predefined threshold.
'Such pricing practices may inadvertently facilitate unauthorised use of subsidised APM (administered pricing mechanism) gas by commercial consumers who may be misclassified as domestic consumers. Additionally, genuine domestic consumers with higher consumption levels may be unfairly subjected to elevated charges, despite natural gas being supplied to CGD entities at a uniform APM rate,' PNGRB said.
Advising CGD firms to undertake a 'thorough review of consumption patterns and investigate anomalous cases where domestic consumers exhibit significantly higher usage relative to industry average,' PNGRB said based on the findings, suitable corrective measures should be instituted as per the regulations.
It also cited the government guideline under which the natural gas allocation is made at a concessional rate compared to market or spot LNG prices with an aim to promote the adoption of the fuel across domestic households and transport sector.
Differential pricing of fuel and the resultant challenges, however, are not uncommon in the oil industry with the national oil companies in the past grappling with diversification of the heavily subsidised liquefied petroleum gas (LPG) cylinders. Meant for use only by households, the 14.2 kg cylinder in the past found its way to commercial establishments such as tea stalls, eateries and restaurants. Eventually, it was through a combination of measures, from change in the pricing structure, direct benefit transfer to targetted subsidy, the menace was reined in to a large extent.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Time of India
9 hours ago
- Time of India
Oil companies' captive pipelines may come under regulator's ambit
The oil ministry plans to amend the PNGRB Act, bringing oil companies' dedicated pipelines under the regulatory board's purview. This move aims to enhance monitoring, ensure safety compliance, and potentially convert these pipelines into common carriers. The goal is to foster fair competition and protect consumer interests by enabling third-party access and regulating transportation tariffs. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: The oil ministry is planning to bring oil companies' captive pipelines under the ambit of the Petroleum and Natural Gas Regulatory Board PNGRB ), a move that will help the regulator monitor these pipelines and eventually convert them into common carriers where ministry plans to do this by amending the PNGRB Act."There is a certain ambiguity on dedicated pipelines today, which the amendment will clarify," an official said, adding that the aim is to get companies to register their dedicated pipelines with the regulator and follow common safety protocols. "Companies won't be required to seek authorisation from the PNGRB for the existing dedicated pipelines."The law doesn't recognise what oil companies call "captive" pipelines and instead uses the term "dedicated" for pipelines that are used solely by companies for their own operations. Based on usage, other pipelines are categorised as either common carrier or contract companies that built such "captive" or "dedicated" pipelines years ago have resisted PNGRB's attempts to regulate them or turn them into common carriers. Executives at state-run oil companies remain wary of permitting access to captive pipelines, fearing it could lead to a loss of market share for state-owned law already permits the PNGRB to declare a dedicated pipeline a common carrier or contract carrier, the official wrote to Indian Oil BPCL and HPCL in December 2022, stating that their dedicated pipelines need to be regulated to protect consumer interests."The intent of bringing such pipelines under the ambit of PNGRB is to protect the interest of consumers by fostering fair trade and competition amongst the entities by determining transportation tariff, providing non-discriminatory third-party access and monitoring of compliance of technical and safety standards," PNGRB wrote to the state oil marketing companies in to transport infrastructure and storage is key to dominance in the fuel offer a far cheaper mode of fuel transport than railways. Private refiners currently hold about a 10% share of the petrol, diesel and jet fuel market in the country. With greater access to state firms' pipelines, they could further increase their market share.


The Hindu
a day ago
- The Hindu
Rajasthan formulating five-year plan for domestic piped natural gas supply infrastructure
Following the release of the city gas distribution (CGD) policy, the Bharatiya Janata Party government in Rajasthan is formulating a five-year action plan for infrastructure development and facility expansion for domestic piped natural gas and compressed natural gas supply to the domestic users. The supply of cooking gas for domestic consumption through underground pipelines is a relatively new concept in Rajasthan. The action plan is expected to promote green energy, besides meeting the targets set by the Centre in the petroleum and natural gas sectors. The CGD policy, approved by the State Cabinet last week, envisages the expansion of piped natural gas and CNG networks in small towns and urban areas through simplified and time-bound regulatory procedures. It will ensure the supply of clean, safe and environment-friendly natural gas to reduce carbon emissions across the State. Principal Secretary (Mines & Petroleum) T. Ravikanth said here on Wednesday that a target had been set to provide the piped natural gas to 1.25 lakh households and start 89 new CNG stations during the current financial year, in accordance with the budgetary announcement. He said the safety standards would be complied with during the supply and transportation of natural gas. While interacting with the representatives of 13 CGD institutions, Mr. Ravikanth laid emphasis on promoting green energy, which was the need of the hour. 'The CGD policy has made the provisions for issuing timely permissions to the agencies. District level committees have also been formed for addressing the issues and ensuring a better coordination,' he said. A web portal was being prepared with the help of the Department of Information Technology, through which the works for execution, coordination and monitoring would be carried out, Mr. Ravikanth said. The action plan is expected to accelerate the shift towards cleaner fuel options and reduce the dependence on conventional fossil fuels. New pipelines of an estimated length of 2,000 km are proposed to be laid for domestic gas supply in eight cities of the State, including Jaipur, by the end of the current financial year. The Mines & Petroleum Department has asked the CGD institutions to prepare their roadmap for laying the pipelines and submit it to the State government. The release of domestic cooking gas connections will be followed by the connections through pipelines on a large scale in the industrial areas of the State. Mr. Ravikanth said the State government was serious about promoting the use of natural gas and had issued the CGD policy with this objective. Rajasthan State Gas Limited Managing Director Ranveer Singh said at the meeting that the CGD policy would help in the development of infrastructure facilities for the institutions and build a sustainable gas-based ecosystem.


Time of India
2 days ago
- Time of India
Exxon in talks with Trinidad for seven deepwater blocks
Exxon Mobil has begun negotiations with the Trinidad and Tobago government to explore for oil and gas in up to seven deepwater blocks off the East Coast of the Caribbean country, which the top US oil producer left more than two decades ago, two sources close to the talks told Reuters. The areas Exxon is interested in are located north of the company's prolific Stabroek block in Guyana, the fastest-growing oil production province in the world, the people said. Exxon and partners Hess and CNOOC have discovered more than 11 billion barrels of recoverable oil and gas in Stabroek and plan to produce more than 900,000 barrels per day of light sweet crude later this year. Trinidad and Tobago is speaking with several major oil and gas companies, Trinidad and Tobago's Energy Minister Roodlal Moonilal told Reuters on Tuesday. "We are in discussions with major players to ramp up exploration and production within and outside of bid rounds," Moonilal said, without disclosing names. Exxon said it does not comment on rumors or speculation. Exxon left Trinidad and Tobago in 2003 after a failed exploration program. Under the new government of Prime Minister Kamla Persad-Bissessar, Trinidad aims to rejuvenate investment, especially offshore, where more gas output is needed to support the nation's liquefied natural gas (LNG) and petrochemical industries. Since she took office in April, a flagship offshore gas project with neighboring Venezuela that lost its US authorisation to move forward has been shelved, while the government has focused efforts on deepening ties with the region's other energy producers. According to Trinidad's laws, the government can individually negotiate areas for exploration and production if they are not included in a competitive bidding round. Trinidad and Tobago is in the middle of a deepwater auction that has been extended to close on September 17, and which does not include the blocks Exxon is negotiating for. If Exxon and Trinidad reach an agreement, the US producer could acquire almost all the ultra deepwater blocks that remain unlicensed. The large discoveries of oil and gas made in recent years in the Guyana-Suriname basin are one of the reasons why Trinidad is now seeing a renewed interest in its ongoing deepwater auction, the country's energy minister said at a conference early in July. Moonilal said Trinidad was open to bids outside of auctions and hinted at the negotiations. "We are currently considering one such proposal, and if the negotiations are successful, a major announcement will soon be made," he added.>