City gas supply companies spar with OMCs over hike in charges
Mumbai: City gas distribution firms have sought the Centre’s intervention following a demand by state-run oil marketing companies (OMCs) for a higher commission on retail sales of compressed natural gas (CNG).
The Petroleum and Natural Gas Regulatory Board had last November barred OMCs, including Bharat Petroleum Corp. Ltd, Hindustan Petroleum Corp. Ltd and Indian Oil Corp. Ltd, from opening CNG dispensing units at their retail fuel outlets. These OMCs have a commission-based arrangement with city gas licensees on CNG sales through their retail outlets.
City gas distribution companies, including Mahanagar Gas Ltd, Indraprastha Gas Ltd and Gujarat Gas, have urged the Union government to negotiate with the OMCs after they demanded a 90-100% hike in commissions from the existing ₹4.5 per kg to ₹7-8 per kg.
