The oil and gas regulator has issued draft regulations to determine tariff a third party or new entrant would pay for using a network to supply piped and compressed natural gas as India aims to improve penetration of the cleaner alternative to kitchen and auto fuel for curbing pollution.
That, according to analysts, may hurt profit of the nation’s three listed city gas distributors — Gujarat Gas Ltd., Mahanagar Gas Ltd. and Indraprastha Gas Ltd. — as competition will increase. But they await more clarity on the regulations to assess the extent of the impact.
The Petroleum and Natural Gas Regulatory Board on Wednesday notified draft regulation for determination of transportation rate for city gas distribution network and CNG segment.
According to the rules:
- For a geographical area that has been declared open post the marketing exclusivity period, the authorised entity shall estimate…