Dharmendra Pradhan says pipeline tariff rationalisation, gas pricing freedom on anvil

India plans to gradually introduce pricing and marketing freedom for natural gas as well as rationalise pipeline tariffs to help push for a greater share of the environment-friendly fuel in the energy basket, Oil Minister Dharmendra Pradhan said on Wednesday. While he did not spell out the roadmap for freeing gas prices, Pradhan said the current practice of fixing zonal tariffs of a gas pipeline, which typically rises as the gas travels from source to consumption centres, will be replaced by uniform rates.

“With a view to further facilitate a conducive business environment for competitive gas markets, efforts are underway to rationalise gas pipeline tariff structure for improving the affordability of gas across the country and for attracting investments into the gas infrastructure,” an official statement quoted him as saying at International Energy Agency’s (IEA) webinar on ‘Building a Natural Gas Based Economy in India’.