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Business Standard
25-07-2025
- Business
- Business Standard
Govt plans to bring oil firms' private pipelines under PNGRB oversight
Oil ministry plans to amend the Petroleum and Natural Gas Regulatory Board Act to bring oil firms' captive pipelines under regulatory oversight, enabling third-party access & uniform safety standards New Delhi India's oil and gas sector could soon witness a major regulatory shift, as the Ministry of Petroleum and Natural Gas is preparing to bring privately used, or 'captive', pipelines under the supervision of the Petroleum and Natural Gas Regulatory Board (PNGRB), according to a report by The Economic Times. The ministry plans to introduce changes through amendments to the PNGRB Act. Currently, the law refers to such infrastructure as 'dedicated' pipelines — used solely for a company's internal operations — and does not explicitly recognise the term 'captive', which is often used by oil firms. Push for common carrier status Under the existing law, PNGRB has the authority to declare a dedicated pipeline a 'common carrier' or 'contract carrier', depending on its usage. Common carriers must allow third-party access, which many state-run oil companies have been reluctant to accept. They fear it could result in a decline in their market dominance if private players gain access to their infrastructure, the news report said. In December 2022, PNGRB had written to major state-owned oil firms — Indian Oil, Bharat Petroleum, and Hindustan Petroleum — urging regulation of their dedicated pipelines to ensure fair play and 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... and monitoring of compliance of technical and safety standards,' the regulator wrote in its letter. EU sanctions to hit Indian oil exporters Recent European Union sanctions on Russian crude products are likely to push Indian refiners to depend more on intermediaries and traders to maintain overseas sales. Indian private refiners like Reliance Industries and Nayara Energy are likely to face challenges after the EU's 18th round of sanctions against Russia, news agency Reuters reported. The new rules ban imports of petroleum products made from Russian crude, even if refined in a third country, affecting key export markets. Reliance, India's top buyer of Russian oil, exported nearly 2.83 million barrels of diesel and 1.5 million barrels of jet fuel per month to Europe in 2025, which accounted for about 30 per cent and 60 per cent of its exports of these fuels. The new sanctions will be implemented gradually over six months. Nayara Energy, which is backed by Russia's Rosneft, is also sanctioned under the new package. With these developments, Indian refiners may increasingly rely on traders to divert their products to alternative markets.
Time of India
25-07-2025
- Business
- Time of India
Oil companies' captive pipelines may come under regulator's ambit
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 needed. The 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 carrier. Oil 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 firms. The law already permits the PNGRB to declare a dedicated pipeline a common carrier or contract carrier, the official said. PNGRB 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 2022. Access to transport infrastructure and storage is key to dominance in the fuel market. Pipelines 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.
Time of India
24-07-2025
- Business
- 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.
