Starting July 1, transportation of natural gas for shorter distances through the East West Natural Gas Pipeline (EWNGP) is set to become expensive, potentially increasing input cost of fertliser makers and city gas distributors (CGDs). The Petroleum and Natural Gas Regulatory Board (PNGRB) in its zonal tariff order on June 4 approved a 337% hike in tariff for zone 1 and 79% hike in zone 2.
The tariff for zone 1 has been revised to Rs 65.50 per million British thermal unit (mmBtu) on the gross calorific value (GCV) basis from the existing Rs 15. A zone is a pipeline length of 300 km. The 1,400-km EWNGP runs from Kakinada in Andhra Pradesh to Bharuch in Gujarat.
