India's Petroleum Regulator Takes a Stand Against Gas Pricing Discrepancies

In a significant move to ensure fairness and transparency in the distribution of piped natural gas (PNG), the Petroleum and Natural Gas Regulatory Board (PNGRB) has directed city gas distributors to adopt a uniform pricing structure for household consumers. This decision aims to eliminate the misuse of subsidised gas and prevent unfair charges to genuine users.

Addressing the Issue of Telescopic Pricing

The PNGRB highlighted concerns over a telescopic pricing system, where gas prices increase with consumption, potentially encouraging the misuse of subsidised gas by commercial entities misclassified as domestic users. The regulator has called this practice incorrect and urged for immediate rectification.

Ensuring Fairness for All Domestic Consumers

PNGRB emphasized that all domestic households should benefit from a single, uniform rate for PNG, regardless of their consumption levels. This directive is part of broader efforts to streamline the gas sector and promote the use of cleaner energy sources across India.

Aligning with India's Energy Goals

This initiative supports India's ambitious plan to increase natural gas's share in its energy mix to 15% by 2030. With city gas distribution expected to drive demand, PNGRB's actions are critical for achieving this target.