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Regulator asks IGL to reduce gas prices

Last Updated: Wednesday, April 11, 2012 - 00:23

New Delhi: Oil regulator PNGRB has slashed the network tariff and CNG compression charge IGL billed on sale of piped cooking gas to households and CNG to automobiles in the national capital, by over 60 percent and asked the firm to refund to consumers the excess amount charged since 2008.

The Petroleum and Natural Gas Regulatory Board (PNGRB) in an April 9 order fixed IGL's pipeline network tariff at Rs 38.58 per million British thermal unit as against Rs 104.05 per mmBtu proposed by the company.

It also cut compression charge for CNG to Rs 2.75 per kg from Rs 6.66 per kg submitted by IGL.

PNGRB said the new charges would be applicable from April 1, 2008.

"The Network Tariff and the Compression Charge for CNG in respect of the Delhi city gas distribution network of IGL shall be Rs 38.58 per mmBtu and Rs 2.75 per kg respectively with effect from April 1, 2008," it said.

IGL, it said, shall recover the Network Tariff and Compression Charge for CNG separately through an invoice without any premium or discount on a non-discriminatory basis.

"... the difference between the Network Tariff and Compression Charge for CNG submitted by IGL and that determined by the Board ... would be reflected through appropriate reduction in selling prices from the date of issuance of this order (April 9)," PNGRB said.

The Board said the modalities and timeframe for refund of differential Network Tariff and the Compression Charge for CNG for the period from April 1, 2008, till the date of issuance of the order shall be decided and advised subsequently.


First Published: Tuesday, April 10, 2012 - 15:58
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