Unified fee for more than a dozen gas pipelines from April 1

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More than a dozen gas pipelines connected to the national grid will be charged a unified fee from April 1. This information was given by the Petroleum and Natural Gas Regulatory Board on Wednesday. BLiTZ reported in February that the government would roll out the new system from April.

The Petroleum and Natural Gas Regulatory Board has notified that under the principle of ‘One Country, One Grid and One Tariff’, the levelised unit tariff will be Rs 73.93 per metric million British Thermal Unit. The new fee is expected to benefit customers transporting fuel over longer distances and through multiple pipelines.

At present, consumers have to pay additional charges for using multiple and interconnected pipelines. Due to this, consumers have to pay more for carrying fuel at a distance as compared to a nearby one. To ease the integrated tariff, the sector regulator has introduced integrated natural gas pipeline tariff at the unit level.

Under the new system, the consumer will be charged a unified fee for transportation of gas in three zones, whereas earlier the fee was charged for two zones. Under this, up to 300 km from the source (gas field or liquefied natural gas import terminal), 300-1200 km and more than 1200 km have to be taken.

The National Gas Grid consists of Indian Oil Corporation Limited, Oil and Natural Gas Corporation Limited, GAIL (India) Limited, Pipeline Infrastructure Limited, Gujarat State Petronet Limited, Gujarat Gas Limited, Reliance Gas Pipeline Limited, CSPL India Gasnet Limited and GSPL India Transco Limited. All interconnected pipelines are networked and powered pipelines.

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