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Motilal Oswal Report
The Petroleum and Natural Gas Regulatory Board is in the process of formulating a single tariff across integrated pipeline network, in line with the aim to reduce transportation cost for natural gas for longer distances.
The announced open house for the determination of a unified tariff, in respect of Integrated Natural Gas Pipeline System, attracted various comments from stakeholders.
Amid this, we garner the comments to highlight the various bottlenecks that remain to be answered by the regulator.
The regulator had attempted to announce a unified tariff in 2018 as well, when many of the prime stakeholders had raised concerns about the idea despite agreeing to its implementation for the greater good.
Most of the stakeholders have raised a similar concern that selective unification would lead to inefficiencies and pancaking would still pose an issue. Also, there are concerns regarding an increase in input cost for consumers (as in 2018).
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