Failure to meet household gas demand will have consequences, says regulator

The Petroleum and Natural Gas Regulatory Board (PNGRB) has made it clear that consumer protection is a top priority for it, and the board is “coming down heavily” on companies that fail to meet households’ gas needs for new connections or supplies. The Economic Times (ET) has reported. PNGRB chairman Anil Kumar Jain said it will take action against companies promoting more profitable compressed natural gas (CNG) at the expense of domestic connections.

Jain told AND“It is reported that the City Gas Distribution (CGD) license holders have been negligent in providing connectivity. In many cases, connections have been established, but gas flow has not been initiated.

” He added that the board is looking into this and will soon take strict action against licensees of City Gas Distribution (CGD).

Anil is a former Coal Minister and joined the PNGRB in May. He has a PhD in natural gas. He told AND that the board was working to broaden the adoption of natural gas and involve consumers in decision-making through fleet owners and residents’ welfare associations.

On the adoption of CNG-powered vehicles, Jain said affordable CNG rates and a better network of CNG pumps that will put an end to long queues at fuel stations can help ensure rapid adoption of CNG in the country.

AND report said.

Jain added, “I have no authority to fix prices for CNG. “But if the government gives them (domestic gas) at a particularly lower price, I feel the government could explore whether it also has the power to demand what the end-consumer price for CNG could be.

”

Anil Jain narrated AND that CNG retailers have the advantage of low input costs due to the government’s allocation of cheap domestic gas, along with the freedom to sell the natural gas at the market price in their respective monopoly areas. He added that CGD players are selling about 20 million metric standard cubic meters per day (MMSCMD) of gas as CNG and 3 MMSCMD as PNG to homes. AND report stated.