Cost rationalisation: PNGRB set to release framework for unified gas transport tariff

The Petroleum and Natural Gas regulatory Board (PNGRB) is set to release a unified gas transport tariff framework to reduce the cost of transportation of gas, a senior government official said. Many industry players had opposed the PNGRB proposal to rationalise transport tariffs on integrated gas pipeline networks such as those of GAIL and Gujarat State Petronet Ltd, pointing out that the move to reduce tariffs for customers further away from the source of gas would lead to cross-subsidisation with customers near sources of gas having to pay more for in gas transport costs.

Petroleum Secretary Tarun Kapoor said that studies by the PNGRB had shown that the hike in tariff for customers near sources of gas would not be too much.