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New Delhi, Jul 20 (PTI) Oil sector regulator PNGRB has ordered metropolis fuel retailers to cost a uniform value for pure fuel they pipe to family kitchens for cooking functions, no matter consumption ranges, because it seems to curb the tendency of firms to cost the next charge past a utilization threshold.
The federal government allocates pure fuel priced at decrease than market charges, known as APM fuel, to metropolis fuel retailers on the market to households as piped pure fuel (PNG). Because the allocation is made by the federal government at sub-market value, the expectation is that the town fuel retailers will move on the profit to customers.
Whereas fuel meant for family kitchens is priced at decrease than market charges, the identical equipped to business institutions, like motels, is to be priced on the market charge.
The Petroleum and Pure Gasoline Regulatory Board (PNGRB) in a discover mentioned it has come to mild that “sure metropolis fuel distribution (CGD) entities are implementing a telescopic pricing construction for piped pure fuel (PNG) home shoppers, whereby the per SCM (Normal Cubic Meter) value of pure fuel escalates as consumption surpasses a predefined threshold”.
Such a observe, the PNGRB mentioned, is wrong.
“Such pricing practices could inadvertently facilitate the unauthorised use of subsidised administered value mechanism (APM) fuel by business shoppers, who could also be misclassified as home shoppers,” the regulator mentioned.
The regulator, nonetheless, didn’t identify the CGD firms indulging in such observe.
PNGRB mentioned APM fuel is being equipped to CGD entities to fulfil the PNG (Home) and CNG (Transport) demand.
“This allocation is made at a concessional charge in comparison with market or spot LNG costs, with the target of selling the adoption of pure fuel throughout home households and the transport sector.”
Telescopic pricing construction for PNG “could inadvertently facilitate the unauthorised use of subsidised APM fuel by business shoppers who could also be misclassified as home shoppers”, it mentioned.
“Moreover, real home shoppers with increased consumption ranges could also be unfairly subjected to elevated prices, regardless of pure fuel being equipped to CGD entities at a uniform APM charge,” it added.
The regulator mentioned that to uphold the rules of fairness and transparency, CGD entities ought to undertake a radical evaluation of consumption patterns and examine anomalous circumstances, the place home shoppers exhibit considerably increased utilization relative to the business common.
“Based mostly on the findings, appropriate corrective measures be instituted as per the rules on the topic. PNG (Home kitchen utilization) needs to be equipped at a uniform charge to all home family shoppers, no matter their each day consumption ranges,” PNGRB added.
Similar to piped pure fuel, differential pricing exists even in LPG costs.
Households purchase 14.2-kg cylinders at subsidised charges whereas business institutions, like motels and eating places, are to make use of market-priced 19-kg business LPG cylinders. However diversion of home LPG to business institutions has been a rampant observe.
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