Latest news with #PNGRB
Mint
2 days ago
- Business
- Mint
Oil regulator cracks down on city gas firms; seeks uniform price of piped cooking gas
New Delhi, Jul 20 (PTI) Oil sector regulator PNGRB has ordered city gas retailers to charge a uniform price for natural gas they pipe to household kitchens for cooking purposes, regardless of consumption levels, as it looks to curb the tendency of companies to charge a higher rate beyond a usage threshold. The government allocates natural gas priced at lower than market rates, called APM gas, to city gas retailers for sale to households as piped natural gas (PNG). Since the allocation is made by the government at sub-market price, the expectation is that the city gas retailers will pass on the benefit to users. While gas meant for household kitchens is priced at lower than market rates, the same supplied to commercial establishments, like hotels, is to be priced at the market rate. The Petroleum and Natural Gas Regulatory Board (PNGRB) in a notice said it has come to light that "certain city gas distribution (CGD) entities are implementing a telescopic pricing structure for piped natural gas (PNG) domestic consumers, wherein the per SCM (Standard Cubic Meter) price of natural gas escalates as consumption surpasses a predefined threshold". Such a practice, the PNGRB said, is incorrect. "Such pricing practices may inadvertently facilitate the unauthorised use of subsidised administered price mechanism (APM) gas by commercial consumers, who may be misclassified as domestic consumers," the regulator said. The regulator, however, did not name the CGD companies indulging in such practice. PNGRB said APM gas is being supplied to CGD entities to fulfil the PNG (Domestic) and CNG (Transport) demand. "This allocation is made at a concessional rate compared to market or spot LNG prices, with the objective of promoting the adoption of natural gas across domestic households and the transport sector." Telescopic pricing structure for PNG "may inadvertently facilitate the unauthorised use of subsidised APM gas by commercial consumers who may be misclassified as domestic consumers", it said. "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," it added. The regulator said that to uphold the principles of equity and transparency, CGD entities should undertake a thorough review of consumption patterns and investigate anomalous cases, where domestic consumers exhibit significantly higher usage relative to the industry average. "Based on the findings, suitable corrective measures be instituted as per the regulations on the subject. PNG (Domestic kitchen usage) should be supplied at a uniform rate to all domestic household consumers, irrespective of their daily consumption levels," PNGRB added. Just like piped natural gas, differential pricing exists even in LPG prices. Households buy 14.2-kg cylinders at subsidised rates while commercial establishments, like hotels and restaurants, are to use market-priced 19-kg commercial LPG cylinders. But diversion of domestic LPG to commercial establishments has been a rampant practice.
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Business Standard
2 days ago
- Business
- Business Standard
Oil regulator cracks down on city gas firms; seeks uniform piped gas price
Oil sector regulator PNGRB has ordered city gas retailers to charge a uniform price for natural gas they pipe to household kitchens for cooking purposes, regardless of consumption levels, as it looks to curb the tendency of companies to charge a higher rate beyond a usage threshold. The government allocates natural gas priced at lower than market rates, called APM gas, to city gas retailers for sale to households as piped natural gas (PNG). Since the allocation is made by the government at sub-market price, the expectation is that the city gas retailers will pass on the benefit to users. While gas meant for household kitchens is priced at lower than market rates, the same supplied to commercial establishments, like hotels, is to be priced at the market rate. The Petroleum and Natural Gas Regulatory Board (PNGRB) in a notice said it has come to light that "certain city gas distribution (CGD) entities are implementing a telescopic pricing structure for piped natural gas (PNG) domestic consumers, wherein the per SCM (Standard Cubic Meter) price of natural gas escalates as consumption surpasses a predefined threshold". Such a practice, the PNGRB said, is incorrect. "Such pricing practices may inadvertently facilitate the unauthorised use of subsidised administered price mechanism (APM) gas by commercial consumers, who may be misclassified as domestic consumers," the regulator said. The regulator, however, did not name the CGD companies indulging in such practice. PNGRB said APM gas is being supplied to CGD entities to fulfil the PNG (Domestic) and CNG (Transport) demand. "This allocation is made at a concessional rate compared to market or spot LNG prices, with the objective of promoting the adoption of natural gas across domestic households and the transport sector." Telescopic pricing structure for PNG "may inadvertently facilitate the unauthorised use of subsidised APM gas by commercial consumers who may be misclassified as domestic consumers", it said. "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," it added. The regulator said that to uphold the principles of equity and transparency, CGD entities should undertake a thorough review of consumption patterns and investigate anomalous cases, where domestic consumers exhibit significantly higher usage relative to the industry average. "Based on the findings, suitable corrective measures be instituted as per the regulations on the subject. PNG (Domestic kitchen usage) should be supplied at a uniform rate to all domestic household consumers, irrespective of their daily consumption levels," PNGRB added. Just like piped natural gas, differential pricing exists even in LPG prices. Households buy 14.2-kg cylinders at subsidised rates while commercial establishments, like hotels and restaurants, are to use market-priced 19-kg commercial LPG cylinders. But diversion of domestic LPG to commercial establishments has been a rampant practice.
Time of India
2 days ago
- Business
- Time of India
PNGRB price order: Regulator tells CGD firms to charge one PNG rate; warns against misuse of subsidised gas
Representative image (Picture credit: ANI) I ndia'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. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Urban Ascent by Emaar 4 BHK Apartments Starting at ₹ 5.25 Cr* on Dwarka E-Way , Near Gurugram Emaar India Get Quote Undo 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. 'Genuine domestic consumers with higher consumption levels may be unfairly subjected to elevated charges,' the PNGRB said. It directed companies to review consumer usage and investigate outliers, ensuring fair and transparent billing for all residential users. PNGRB refrained from naming companies that had adopted telescopic pricing, but stressed that 'PNG (Domestic kitchen usage) should be supplied at a uniform rate to all domestic household consumers, irrespective of their daily consumption levels.' The issue echoes similar concerns in the LPG sector, where subsidised 14.2-kg cylinders for household use are often misused by commercial establishments to avoid paying for higher-priced 19-kg commercial cylinders. This directive comes amid PNGRB's broader efforts to streamline the gas sector. As per ANI, the regulator recently announced the Second Amendment to the Natural Gas Pipeline Tariff Regulations, 2025, reducing tariff zones from three to two and extending unified tariffs to the domestic PNG and CNG segments nationwide. The push aligns with India's long-term plan to increase the share of natural gas in its primary energy mix to 15 per cent by 2030, up from the current 7 per cent. A recent PNGRB study projects that city gas distribution will drive the bulk of this demand, with PNG and CNG together expected to consume over 87 mmscmd by 2030. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
2 days ago
- Business
- Time of India
Delhi: Oil regulator seeks uniform price for piped cooking gas, cracks down on retailers
Petroleum and Natural Gas Regulatory Board ( PNGRB ), the oil sector regulator, has ordered all of Delhi 's gas retailers to charge a uniform price for natural gas they pipe to household kitchens for cooking purposes, regardless of consumption levels. This has been done to curb the practice of companies to charge a higher rate beyond a usage threshold. The city gas retailers are allocated with natural gas priced at lower than market rates, called APM gas, for sale to households as piped natural gas (PNG). The expectation from the government is that the retailers pass on the benefits to consumers since they get it for a lower price. Explore courses from Top Institutes in Select a Course Category Public Policy Data Science Design Thinking Artificial Intelligence MCA Product Management Digital Marketing Degree Management Cybersecurity PGDM healthcare Data Science MBA Healthcare CXO Others Operations Management Technology Data Analytics Leadership Finance Project Management others Skills you'll gain: Economics for Public Policy Making Quantitative Techniques Public & Project Finance Law, Health & Urban Development Policy Duration: 12 Months IIM Kozhikode Professional Certificate Programme in Public Policy Management Starts on Mar 3, 2024 Get Details Skills you'll gain: Duration: 12 Months IIM Calcutta Executive Programme in Public Policy and Management Starts on undefined Get Details However, gas supplied to commercial establishments like hotels are priced at market rate and not lower. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Senior Living Homes in Mirpur May Surprise You Senior Living | Search Ads Undo The PNGRB in a notice said it has come to light that "certain city gas distribution (CGD) entities are implementing a telescopic pricing structure for piped natural gas (PNG) domestic consumers, wherein the per SCM (Standard Cubic Meter) price of natural gas escalates as consumption surpasses a predefined threshold". It termed such a practice as incorrect. Live Events "Such pricing practices may inadvertently facilitate the unauthorised use of subsidised administered price mechanism (APM) gas by commercial consumers, who may be misclassified as domestic consumers," the regulator said. However, companies involved in such practice have not been named. PNGRB said APM gas is being supplied to CGD entities to fulfil the PNG (Domestic) and CNG (Transport) demand. "This allocation is made at a concessional rate compared to market or spot LNG prices, with the objective of promoting the adoption of natural gas across domestic households and the transport sector." Telescopic pricing structure for PNG "may inadvertently facilitate the unauthorised use of subsidised APM gas by commercial consumers who may be misclassified as domestic consumers", it said. "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," it added. The regulator said GGD entities should undertake a thorough review of consumption patterns and investigate anomalous cases, where domestic consumers exhibit significantly higher usage relative to the industry average for transparency. "Based on the findings, suitable corrective measures be instituted as per the regulations on the subject. PNG (Domestic kitchen usage) should be supplied at a uniform rate to all domestic household consumers, irrespective of their daily consumption levels," PNGRB added. Just like piped natural gas, differential pricing exists even in LPG prices. Households buy 14.2-kg cylinders at subsidised rates while commercial establishments, like hotels and restaurants, are to use market-priced 19-kg commercial LPG cylinders. But diversion of domestic LPG to commercial establishments has been a rampant practice.
The Hindu
5 days ago
- Business
- The Hindu
Supply PNG to households at a uniform rate, PNGRB tells CGD firms
The Petroleum and Natural Gas Regulatory Board (PNGRB) has directed City Gas Distribution (CGD) entities to supply piped natural gas at a uniform rate to all domestic household consumers, irrespective of their daily consumption levels. 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.
