PNGRB issues new tariff structure for GSPL pipeline

New tariffs marginally lower than proposed

The oil & gas regulator, Petroleum and Natural Gas Regulatory Board (PNGRB) has announced new tariffs for the Gujarat State Petronet Limited (GSPL) for its high pressure Gujarat gas grid network. The regulator has curtailed marginally the proposed tariff structure by the state-run gas transmission player.

For the zone-wise tariff structure, PNGRB fixed the levelised tariff for zone one at Rs 18.49 against GSPL’s proposal for Rs 19 per million metric British thermal unit (MMBTU), while that for zone-2 and zone-3 has been fixed at Rs 27.80 per MMBTU and RS 37.02 MMBTU respectively. GSPL had proposed Rs 28.57 per MMBTU and Rs 38.04 per MMBTU for zone-2 and zone-3 respectively.

“The difference between the tariff already charged and the zonal tariff apportionment approved by the board is to be adjusted by the entity (GSPL) with the customers from the date of notification of the PNGRB regulations in November 20, 2008,” the PNGRB noted in its statement issued on Tuesday.

In its order last year, the board had fixed Rs 23.99 per MMBTU on levelised basis for the high pressure Gujarat gas grid pipeline network of GSPL. However, GSPL was asked to submit the apportionment of the levelised tariff over all the tariff zones with detailed calculations within 10 days of the issue of the order on September 11, 2012.

GSPL was granted an extension up to November 30, 2012 for submission of the apportionment of the levelised tariff over all the tariff zones with detailed calculations. On December 3, 2012, GSPL had submitted the apportionment of levelised tariff for all tariff zones for high pressure Gujarat Gas Grid pipeline network.

It may be noted that soon after announcement of the PNGRB order on zonal tariff, GSPL shares gained momentum on the stock exchanges. GSPL shares closed at Rs 73.20 on Bombay Stock Exchange (BSE) with over 2.5% gain over Monday’s close.

-New tariffs are marginally lower than the proposed tariffs by GSPL
-GSPL shares rise post the announcement by petroleum regulator today