Latest news with #PetroleumandNaturalGasRegulatoryBoard
Time of India
6 days ago
- 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
6 days ago
- 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.
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Business Standard
20-07-2025
- 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.
The Print
19-07-2025
- Business
- The Print
Rs 1,950 crore city gas distribution project in Bankura, Purulia to be completed by FY30
The project will establish 29 Compressed Natural Gas (CNG) stations for vehicular fuel across the two districts in line with authorisation from the Petroleum and Natural Gas Regulatory Board (PNGRB), a statement said. Prime Minister Narendra Modi on Friday laid the foundation stone for the project that aims to provide Piped Natural Gas (PNG) to both retail households and industrial projects in the two districts of West Bengal. Kolkata, Jul 18 (PTI) The Rs 1,950 crore City Gas Distribution (CGD) project in West Bengal's Bankura and Purulia districts aims to provide Piped Natural Gas (PNG) connections to 5.55 lakh households, over 250 commercial units, and more than 35 industrial consumers, officials said. The project is scheduled for completion by March 15, 2030. Once operational, it is expected to serve a population of over 65 lakh with cleaner, reliable, and cost-effective fuel solutions, Bharat Petroleum said. According to BPCL Director (Refineries) and acting Chairman & Managing Director, Sanjay Khanna, the initiative marks a significant step towards expanding access to clean and affordable energy in India. The project is also expected to create over 15 lakh man-days of direct and indirect employment, supporting local economies in Bankura and Purulia. The CGD network will contribute to India's net-zero ambitions by promoting natural gas as a cleaner alternative to traditional fuels. It is projected to cut greenhouse gas emissions by 27 per cent, or 191,000 metric tonnes over 25 years — equivalent to planting nearly 3.46 lakh trees annually. PTI BSM RG This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
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Business Standard
18-07-2025
- Business
- Business Standard
₹1,950 crore CGD project in Bankura, Purulia to be completed by FY30
The Rs 1,950 crore City Gas Distribution (CGD) project in West Bengal's Bankura and Purulia districts aims to provide Piped Natural Gas (PNG) connections to 555,000 households, over 250 commercial units, and more than 35 industrial consumers, officials said. Prime Minister Narendra Modi on Friday laid the foundation stone for the project that aims to provide Piped Natural Gas (PNG) to both retail households and industrial projects in the two districts of West Bengal. The project will establish 29 Compressed Natural Gas (CNG) stations for vehicular fuel across the two districts in line with authorisation from the Petroleum and Natural Gas Regulatory Board (PNGRB), a statement said. The project is scheduled for completion by March 15, 2030. Once operational, it is expected to serve a population of over 65 lakh with cleaner, reliable, and cost-effective fuel solutions, Bharat Petroleum said. According to BPCL Director (Refineries) and acting Chairman & Managing Director, Sanjay Khanna, the initiative marks a significant step towards expanding access to clean and affordable energy in India. The project is also expected to create over 15 lakh man-days of direct and indirect employment, supporting local economies in Bankura and Purulia. The CGD network will contribute to India's net-zero ambitions by promoting natural gas as a cleaner alternative to traditional fuels. It is projected to cut greenhouse gas emissions by 27 per cent, or 191,000 metric tonnes over 25 years equivalent to planting nearly 3.46 lakh trees annually. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
