PNGRB has ordered gas retailers in Delhi to charge a uniform price for natural gas povide to house for cooking without consumption level dtermining pricing. | Image: x
Oil sector regulator Petroleum and Natural Gas Regulatory Board (PNGRB), has ordered gas retailers in Delhi to charge a uniform price for natural gas povide to house for cooking without consumption level dtermining pricing. The move aims to reduce cases of surchrage by companies when one uses natural gas beyond their usage limit.
The city gas retailers are allocated with natural gas priced at lower than market rates, called APM gas, which is provided to households as piped natural gas (PNG). The administration expects retailers to pass on the benefits to consumers since they get it for a lower price. However, gas supplied to commercial establishments like hotels are priced at market rate and not lower.
The PNGRB in a notice said it has come to light that "certain city gas distribution (CGD) entities are implementing a telescopic pricing structure for piped natural gas (PNG) domestic consumers, wherein the per SCM (Standard Cubic Meter) price of natural gas escalates as consumption surpasses a predefined threshold".
It termed such a practice as incorrect. "Such pricing practices may inadvertently facilitate the unauthorised use of subsidised administered price mechanism (APM) gas by commercial consumers, who may be misclassified as domestic consumers," the regulator said, citing media reports.
The firms involved in such practice have not been named. PNGRB said APM gas is being supplied to CGD entities to fulfil the PNG (Domestic) and CNG (Transport) demand.
This allocation is made at a concessional rate compared to market or spot LNG prices, with the objective of promoting the adoption of natural gas across domestic households and the transport sector.
"Telescopic pricing structure for PNG "may inadvertently facilitate the unauthorised use of subsidised APM gas by commercial consumers who may be misclassified as domestic consumers", it said.
Additionally, domestic consumers with reasonable premise for higher consumption levels might be unfairly subjected to elevated charges, it mentioned.
