PNGRB Enforces Uniform Pricing for Household Natural Gas to Curb Disparities

The Petroleum and Natural Gas Regulatory Board (PNGRB) has mandated that city gas retailers implement a uniform pricing model for the natural gas supplied to households for cooking purposes. This directive aims to curb the existing discrepancies and unapproved practices where consumption beyond a certain threshold incurs higher charges.

Natural gas allocated by the government is billed at a sub-market rate, known as APM gas, intended for household usage. However, the regulator observed that some city gas firms were applying a telescopic pricing structure, whereby the gas price increases as domestic consumption exceeds a set limit. This undermines the intended benefit for consumers.

According to PNGRB, the practice allows unauthorized use of lower-priced gas by commercial entities classified wrongly as domestic consumers. The board stresses the need for CGD companies to reassess consumption patterns and investigate anomalies, ensuring domestic users benefit fairly from sub-market pricing.

(With inputs from agencies.)