The Petroleum and Natural Gas Regulatory Board (PNGRB) on Wednesday notified the levelised unified tariff of ₹73.93 per million British thermal units (mBtu), which will come into effect from April 1.
“PNGRB has amended the PNGRB (Determination of Natural Gas Pipeline Tariff) Regulations to incorporate the regulations pertaining to unified tariff for natural gas pipelines with a mission of ‘One Nation, One Grid and One tariff’,” the regulator said.
The board has also created three tariff zones for unified tariff, where the first zone is up to a distance of 300 km from the gas source. The second zone is 300–1,200 km and the third is beyond 1,200 km. The zonal unified tariffs will be effective from April 1, 2023, it added.
The unified tariff will be ₹73.93 per mBtu, including additional GST implication of ₹0.19 per mBtu, on a gross calorific value (GCV) basis.
Accordingly, the unified tariffs across the three zones will be Zone 1 (₹39.45 per mBtu), Zone 2 (₹74.97) and Zone 3 (₹99.90). This also includes additional GST of ₹0.19 per mBtu on settlement amount between pipeline entities, the order said.
Reducing tariffs
Analysts said that unified tariff will help reduce the tariffs for upcoming pipelines thereby facilitating more capex in pipelines.
The national gas grid covers all the interconnected pipeline networks owned and operated by entities such as Indian Oil Corporation, Oil and Natural Gas Corporation, GAIL (India), Pipeline Infrastructure, Gujarat State Petronet, Gujarat Gas, Reliance Gas Pipelines, GSPL India, Gasnet and GSPL India Transco.
With commissioning of newer interconnected pipelines, the national gas grid will keep expanding for unified tariff, PNGRB said adding, these entities will get the tariff as per their entitlement while customers would pay unified tariff. The difference between the same will be settled between the pipeline entities for which a settlement mechanism has been notified.
“The reform will specially benefit consumers located in the far-flung areas where currently the additive tariff is applicable and will facilitate development of gas markets and vision of the government to increase the gas utilisation in the country,” the regulator noted.