Petroleum sector regulator PNGRB (Petroleum and Natural Gas Regulatory Board) has directed urban gas retailers to charge a uniform price on PNG supplied to households for cooking, regardless of the level of consumption. This decision has been taken to curb the tendency to charge higher prices for consumption above a certain limit of usage. Let us know what kind of notice PNGRB has issued to retailers and how it will affect you.
Why was this decision taken
The Government of India provides a subsidy to provide natural gas to domestic consumers. It is the responsibility of the regulator to ensure that the benefits of this subsidy reach the consumers in a true sense.
The government gives a subsidy on PNG
The government allocates natural gas to urban gas retailers at a price lower than the market price, called APM (Administered Price Mechanism) gas. This gas is sold to households as piped natural gas (PNG). Since the government makes this allocation at a price lower than the market price, it is expected that urban gas retailers will pass on this benefit to the users. The gas used for domestic kitchens is priced below the market price, while the gas supplied to commercial establishments such as hotels should be priced at the market price.
PNGRB issued a notice
PNGRB has said in a notice that it has been found that some urban gas distribution (CGD) companies were applying an escalating pricing structure to domestic consumers of PNG. In this, the price per unit (standard cubic meter) of natural gas used increases when the consumption exceeds a predetermined limit. PNGRB said that such practice is wrong. The regulator said that such pricing behavior may inadvertently promote unauthorized use of subsidized APM gas. However, the regulator did not name the CGD companies involved in such practice. This decision will save common consumers from unnecessary burden.
Current PNG Price in Delhi-NCR
Piped Natural Gas (PNG) prices in the national capital remain at ₹48.59 per SCM (Standard Cubic Meter). IGL (Indraprastha Gas Limited) has not increased the price of PNG in any part of Delhi-NCR, at least in the last 7 months.
PNG Price in Delhi: ₹48.59 per SCM
PNG Price in Noida, Ghaziabad, and Greater Noida: ₹48.46 per SCM
PNG Price in Gurugram and Karnal, Haryana: ₹47.40 per SCM
These prices reflect that efforts were being made to keep PNG prices stable even before the regulatory intervention, but the new order will eliminate the price difference at the consumption level.
