City gas firms to pay same pipeline tariff
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
New Delhi: All city gas distribution (CGD) companies will now pay the same pipeline tariff regardless of their distance from the gas supply source, a measure that will help reduce transportation costs for licensees and potentially lower cooking and transport fuel prices in far-flung licensed areas.The Petroleum and Natural Gas Regulatory Board (PNGRB) has amended the Natural Gas Pipeline Tariff Regulations , introducing key reforms to the sector. These include streamlining unified tariff zones, allowing a single pipeline tariff for CGD companies, and creating a dedicated pipeline development reserve.The regulator has reduced the number of unified tariff zones from three to two. "This initiative ensures a more equitable tariff structure and enhances access to natural gas, especially in underserved regions," PNGRB said.The existing three zones (up to 300 kilometres, 300-1,200 km and above 1,200 km) will now be consolidated into two (up to 300 km, and above 300 km). This change will lower the pipeline tariff for users located farther from supply sources while marginally increasing it for nearer users. However, overall tariffs are expected to remain revenue-neutral for pipeline operators."The benefit of the unified zonal tariff of zone 1 (up to 300 km) has been extended nationwide to the compressed natural gas (CNG) and piped natural gas (PNG) domestic segments," the regulator said. "This is poised to make natural gas more affordable for urban households and transport networks, thereby supporting broader clean energy adoption."The freight equalisation approach mirrors the pricing mechanism used for liquefied petroleum gas (LPG), where cylinders are priced uniformly across locations, irrespective of distance from refineries or import terminals-though remote areas may bear a small additional freight charge.However, the lowest uniform tariff benefit for CGD companies will not apply to gas sold for industrial and commercial use.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
an hour ago
- Time of India
Banks free to set minimum balance, says RBI Governor Sanjay Malhotra after ICICI Bank's latest move
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The Reserve Bank of India (RBI) has clarified that the decision on the quantum of minimum average balance (MAB) in savings accounts lies solely with individual banks. Speaking at a financial inclusion event in Gujarat on Monday, RBI Governor Sanjay Malhotra stated that the issue does not fall under the central bank's regulatory domain.'The Reserve Bank of India has left it to the banks to decide the quantum of minimum average balance,' Malhotra said on the sidelines of the event. 'Some banks have capped it at Rs 10,000, others at Rs 2,000, and some have done away with it altogether. This issue does not fall under the regulatory domain.'The matter has drawn renewed attention following a report by ET that ICICI Bank has raised the MAB requirement for new customers in urban and metro areas to Rs 50,000, effective August 1. Customers who fail to maintain this balance will incur a penalty of 6% of the shortfall or Rs 500, whichever is development comes at a time when several state-owned banks are moving in the opposite direction, eliminating penalties for not maintaining a minimum balance in an effort to promote financial inclusion. State Bank of India was the first to eliminate penalties for non-maintenance of minimum balance, effectively allowing customers to access banking services without the burden of maintaining a balance. Over the past three months, Punjab National Bank Canara Bank , and Indian Bank have followed suit, waiving penalties on savings account minimum balance contrast, most private sector banks continue to levy a charge, typically 6% of the shortfall in the required minimum average balance or Rs 500 per quarter, whichever is lower. Meanwhile, many banks have also reduced interest rates on savings deposits in recent months, aiming to protect their margins amid changing market dynamics.
Economic Times
an hour ago
- Economic Times
Gold prices rally by Rs 2,400/10 grams in August so far, analysts predict further upside
Gold October futures prices at MCX have surged impressively by Rs 2,430 per 10 grams so far in August. However, they retreated slightly from their high today to trade at Rs 1,01,052 per 10 grams, down Rs 746 or 0.73% in intraday trade. ADVERTISEMENT Similarly, silver September contracts witnessed slight profit booking, trading lower by Rs 390 or 0.34% at Rs 1,14,491 per kg. On Friday, gold and silver settled on a positive note in both domestic and international markets. Gold October futures settled at Rs 1,01,798 per 10 grams with a gain of 0.33%, while silver September futures settled at Rs 1,14,881 per kg with a gain of 0.52%. However, prices slipped below $3,380 per ounce on Monday morning after news broke that US President Donald Trump will meet Russian President Vladimir Putin on August 15 in Alaska to discuss the Ukraine conflict, reducing safe-haven demand. Gold and silver extended their gains last week amid US trade tariff uncertainty and profit-taking in the dollar index. Gold prices hit a lifetime high in the international markets and closed at record levels, while silver crossed the $38.50 per troy ounce mark. Safe-haven buying by global central banks and ongoing geopolitical uncertainty continue to support bullion prices. 'Gold crossed its resistance level of $3,454 per troy ounce, and if prices sustain above these levels, they could strengthen further toward $3,509–3,540 per troy ounce in upcoming sessions,' said Manoj Kumar Jain of Prithvi Finmart Commodity Research. ADVERTISEMENT Today, the US Dollar Index (DXY) hovered near 98.05, down 0.13 points or 0.13%. Unlock 500+ Stock Recos on App 'We expect gold and silver prices to remain volatile this week amid US tariff uncertainty and fluctuations in the dollar index. Gold is expected to trade in the range of $3,410–3,540 per troy ounce, while silver may trade between $36.80 -40.00 per troy ounce,' he added. ADVERTISEMENT Gold has support at Rs 1,01,000-1,00,575 and resistance at Rs 1,02,220-1,02,850 has support at Rs 1,01,000-1,00,575 and resistance at Rs 1,02,220-1,02,850 Silver has support at Rs 1,13,650-1,12,800 and resistance at Rs 1,15,500-1,16,650 Jain suggests buying silver on dips around Rs 1,14,000 with a stop loss of Rs 1,12,800 for a target of Rs 1,16,000. ADVERTISEMENT Standard gold (22 carat) prices in Delhi stand at Rs 57,672/8 grams while pure gold (24 carat) prices stand at Rs 61,456/8 grams. ADVERTISEMENT Standard gold (22 carat) prices in Mumbai stand at Rs 57,600/8 grams while pure gold (24 carat) prices stand at Rs 61,456/8 gold (22 carat) prices in Chennai stand at Rs 57,000/8 grams while pure gold (24 carat) prices stand at Rs 60,736/8 gold (22 carat) prices in Hyderabad stand at Rs 57,096/8 grams while pure gold (24 carat) prices stand at Rs 60,888/8 grams. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Economic Times
2 hours ago
- Economic Times
Commodity Radar: How to trade gold ahead of the Trump-Putin meeting on August 15?
Gold prices slipped sharply on Monday in the opening trade, falling by Rs 900 or 1% per 10 gram, tracking movement in the international markets. The traders booked profit ahead of the crucial meeting between US President Donald Trump and Russian President Vladimir Putin scheduled on August 15 in Alaska. A resolution to Russia's ongoing war with Ukraine could dampen the safe haven appeal of the yellow, triggering profit taking. ADVERTISEMENT Gold's October contracts were trading at Rs 1,00,958, down from last week's all-time high of Rs 1,02,250. On the COMEX, the fall was even sharper as this bullion metal fell 1.5% to $3,438.40 per troy ounce. Commenting on the current trends, Jateen Trivedi, Vice President - Commodity Research Cat LKP Securities said that gold has been showing strength over the past couple of weeks as softer US non-farm payroll data and higher unemployment figures signaled a potential September rate cut by the Federal Reserve. Additionally, fresh tariff measures by Trump have increased safe-haven demand, he said. Trivedi sees the upcoming Trump–Putin meeting on August 15 as an important event as a resolution to the Russia–Ukraine conflict could trigger profit booking in gold. Among the domestic factors, rupee weakness against the dollar amid the ongoing tariff uncertainty may lend additional support to domestic gold prices. ADVERTISEMENT Gold continued its positive momentum last week, closing above the crucial Rs 1,01,700 zone. On the upside, immediate resistance is seen at Rs 1,02,700, followed by Rs 1,03,200. On the downside, strong support lies at Rs 1,01,200 and Rs 1,00,500. A sustained close above Rs 1,02,700 could open the way toward Rs 1,03,500 in the near term. ADVERTISEMENT The RSI (14) is currently at 64.70, indicating bullish momentum without yet being in overbought territory. This suggests there is room for further upside before profit booking pressure action is trading near the upper Bollinger band, reflecting strong buying interest. However, being close to the upper band also hints at possible short-term consolidation if profit booking emerges. ADVERTISEMENT The short-term EMA (8) is trading above the medium-term EMA (21), confirming bullish crossover and supporting a positive bias for the week ahead. ADVERTISEMENT MACD is in the positive territory and widening, indicating strong bullish momentum and supporting further upside overall setup remains bullish, said Trivedi, recommending a buy on dips near Rs 1,01,200 with a stop loss at Rs 1,00,450 on a closing for the week are Rs 1,02,000 and Rs 1,02,500. In Trivedi's view, any sustained move above Rs 1,03,200 could see an extended rally toward Rs 1,03,500. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
