Unified rate approved for natural gas pipeline, new rate applicable from April 1

Tags: Economy/Finance National News

With the ambitious objective of One Nation,One Grid and One Tariff, the Petroleum and Natural Gas Regulatory Board (PNGRB) has decided to change the Unified Tariff which will be applicable from 1st April 2023.

An overview of the news

• PNGRB has notified a levelized Unified tariff of 73.93 rupees per MBTU (Metric Million British Thermal Unit).

• The rates will be implemented as per three tariff zones in the entire gas network of the country.

• This decision will give a boost to the economic development of all regions of the country.

• This will facilitate the government's vision for the development of gas markets and increase the utilization of gas in the country.

Three different Tariff Zones

• The rate will be different for a distance of 300 km from the gas source.

• The rate will be different for the distance of 300-1200 km from the gas source.

• The area of more than 1200 km distance will come in the third zone.

National Gas Grid

• It covers Indian Oil Corporation, ONGC, Gail India, Pipeline Infrastructure Limited, Gujarat State Petronet, Gujarat Gas Limited, Reliance Gas Pipeline, GSPL India Gasnet Limited and GSPL India Trans Limited.