PNGRB opens up competition for city gas cos, but OMCs

The Petroleum and Natural Gas Regulatory Board (PNGRB) has released norms for opening up of competition in the natural gas market in Delhi, Mumbai and Gujarat, but restricted Oil Marketing Companies (OMCs) from directly supplying CNG from retail outlets, where they are currently supplying CNG jointly with City Gas Distribution (CGD) companies.

This restriction is set to protect the market share of city gas distribution companies, which had concerns that OMCs will be able to quickly shift to selling CNG directly from retail points currently in use. CGD companies share retail outlets with OMCs, including Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd, to supply CNG in major cities.