Oil regulator PNGRB has simplified the country’s gas pipeline tariff structure to make the fuel more affordable to distant users and attract investment for building gas infrastructure.
The Petroleum and Natural Gas Regulatory Board (PNGRB) has notified regulations for a “unified” tariff structure for over a dozen pipelines that form the National Gas Grid which will lead to a 20-30 per cent rise in transportation charges paid by users near the source but a reduction for consumers in the hinterland.
“The unified tariff shall be determined by the board in respect of the national gas grid system for each financial year before the start of such financial year,” it said.
At present, the tariff is levied in proportion to the distance transported — the longer the distance, the higher is the charge. This resulted in consumers away from the coast paying higher charges compared with those near it.
The PNGRB has now notified a two-zone tariff structure — Zone-1 will be 300km from the source of gas (gas field or LNG import terminal) and Zone-II will be beyond that.