The introduction of a standard price by the Petroleum and Natural Gas Regulatory Board (PNGRB) was highlighted as a significant change in the energy and natural gas industries by Prime Minister Narendra Modi on Friday.
“Notable reform in the energy and natural gas industry,” Modi tweeted in response to Hardeep Puri, the petroleum minister.
Puri said in a twitter thread that the PNGRB has announced implementation of an uniform tariff, a long-awaited reform in the natural gas sector, in keeping with the purpose of economic growth of all areas of the nation.
Moreover, the minister said that this pricing structure would assist India implement the “One Country, One Grid, One Tariff” approach and will also help to expand the petrol markets in outlying regions.
PNGRB authorised a levelized uniform price of Rs. 73.93 per metric million British thermal units for the natural gas pipeline on March 29. (MMBtu).
Beginning on April 1, 2023, the unified tariff would go into force.
With the goal of “One Country, One Grid, and One Tariff,” the regulator said it has updated the PNGRB (Determination of Natural Gas Pipeline Tariff) Regulations to include the laws relevant to unified pricing for natural gas pipelines.
The government’s “One Nation, One Grid and One Tariff” initiative intends to expand natural gas consumption in the nation and raise its proportion in India’s energy mix from the current 6.2% to 15% by 2030.
The third zone is the remaining length of the national petrol grid system. The PNGRB has also defined three zones for a unified tariff, with the first zone being up to 300 km from the source, the second zone being more than 300 km and up to 1,200 km, and the third zone being the remaining length of the source.
