Oil regulator cracks down on city gas firms; seeks uniform price of piped cooking gas
New Delhi, 20 July (PTI) oil industry regulator PNGRB, city gas retailers, companies beyond the threshold of use of companies to prevent a tendency to prevent a tendency to prevent a tendency to prevent the tendency to reduce the tendency to collect a uniform price for natural gas, independent of the level of price.
The government allocates a natural gas lower than market rates called APM GAS and is offered to households as a pipe natural gas (PNG). Since allocation is made by the government at the market price in the market, expectation is that city gas retailers will benefit users.
The gas designed for household kitchens is at a lower price than the market rates, while it will be priced at the same market rate given to commercial organizations such as hotels.
In a notification of the Petroleum and Natural Gas Regulatory Board (PNGRB), “Certain City Gas Distribution (CGD) institutions apply a telescopic pricing structure for the natural gas (PNG) domestic consumers, where the price of natural gas per SCM (standard cubic meters) increases as foreseen”.
Pngb said that such an application was wrong.
“Such pricing practices can accidentally facilitate the unauthorized use of the price mechanism (APM) gas applied by commercial consumers who may be incorrectly classified as domestic consumers.” He said.
However, the regulator did not name CGD companies that have been put into this application.
PNGB said that the APM gas was provided to CGD organizations to fulfill the PNG (domestic) and CNG (transport) request.
“This allocation is made at a privileged rate compared to market or spot LNG prices in order to promote the adoption of natural gas between the local gas and the transportation sector.”
The telescopic pricing structure for PNG can accidentally facilitate the unauthorized use of subsidized APM gas by commercial consumers who can be incorrectly classified as domestic consumers. ”
“In addition, real domestic consumers with higher consumption levels may be unfairly exposed to high wages, although natural gas is provided to CGD organizations at a uniform APM ratio.”
In order to support the principles of equality and transparency, the regulator said that CGD assets should conduct a comprehensive examination of consumption models and investigate abnormal cases that domestic consumers exhibit significantly higher use than the industrial average.
“Based on the findings, appropriate corrective measures will be initiated according to the relevant regulations.
Just like pipe natural gas, there are different pricing even in LPG prices.
Households, subsidized prices with 14.2 kg cylinders, while commercial organizations such as hotels and restaurants will use 19 kg commercial LPG cylinders with market priced. However, the deviation of domestic LPG to commercial organizations has been a common practice.
