Petroleum and Natural Gas Regulatory Board (PNGRB)
Context : PNGRB Directive on Uniform Gas Pricing
The Petroleum and Natural Gas Regulatory Board (PNGRB) has directed all City Gas Distribution (CGD) companies to supply piped natural gas (PNG) to domestic households at a uniform rate, regardless of their daily consumption. This comes in response to a practice known as telescopic pricing, where charges increase as consumption crosses predefined thresholds.
Why This Matters:
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Such telescopic pricing discourages higher usage among genuine households.
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It may enable commercial misuse of subsidised APM gas under the guise of domestic usage.
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Natural gas under the Administered Price Mechanism (APM) is allocated at concessional rates to domestic and transport sectors to promote cleaner fuel usage.
Regulatory Actions Taken:
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PNGRB directed a thorough review of consumption data to detect anomalies (e.g., abnormally high usage by domestic consumers).
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CGDs have been asked to prevent misclassification and take corrective steps to ensure fair use and pricing.
PNGRB:
| Component | Details |
|---|---|
| Full Form | Petroleum and Natural Gas Regulatory Board |
| Established Under | Petroleum and Natural Gas Regulatory Board Act, 2006 |
| Parent Ministry | Ministry of Petroleum and Natural Gas |
| Nature of Body | Statutory Body |
| Headquarters | New Delhi |
| Functions | Regulates downstream activities like refining, transportation, distribution |
| Key Regulatory Areas | - City Gas Distribution (CGD) networks - CNG, PNG, pipelines |
| Core Responsibilities | - Ensure fair trade and competition - Protect interests of consumers |
| Notified Entities | Natural Gas pipeline operators, CGD companies, etc. |
| Recent Focus | Uniform pricing directive, pipeline capacity allocation, tariff regulations |