Gas regulator body cannot set IGL’s retail prices, rules SC

Petroleum and Natural Gas Regulatory Board had resorted to indirect method to control gas tariff

GN Bureau | July 1, 2015


#indraprastha gas   #natural gas   #supreme court   #delhi high court  

Upholding verdict of Delhi high court, the supreme court on Wednesday said that the Petroleum and Natural Gas Regulatory Board (PNGRB) cannot set tariff for Indraprastha Gas Ltd (IGL).

The PNRGB’s dispute with Indraprastha Gas was over its gas transportation tariff. During the court case it was argued that PNGRB was trying to indirectly regulate prices of IGL as transport is an essential cost in the final pricing.

The gas regulator had also admitted that it did not have the powers to regulate the final retailing price. However, it argued that it does have the powers as per the statute to fix the transmission tariff. It had slashed the transportation and compression charges that IGL could levy by 64 percent.

The dispute began in April 2012 when PNRGB directed IGL to cut its retail prices. IGL moved court, and the high court backed the company, saying there were no statutory provisions that allowed PNRGB to fix retail gas prices. The PNGRB had appealed against the high court order in the supreme court.

The central government had also supported IGL's stand that PNGRB does not have the authority to regulate retail gas prices.

Meanwhile, shares of IGL surged as much as 17.8 percent after the SC verdict in its favour.

Comments

 

Other News

70 words that define India, why Doklam stand-off won’t lead to a war, and more

As India celebrates 70 years of freedom, Governance Now looks back and picks 70 words – or phrases, buzzwords, slogans, events – that best define this ancient nation and young democracy. Here, you will find much to be proud of, much tinged with pangs of nostalgia. Then there are entries that

A dose of PPP in healthcare is what the doctor recommends

Dr Kenneth E Thorpe, a professor of health policy and management at Emory University in the US and also the executive director of Partnership to Fight Chronic Diseases (PFCD), says that the government alone cannot do everything. “They don’t have the resources and capacity. So we have to fin

EESL signs MoU with oil companies for energy saving appliances

Energy Efficiency Services Limited (EESL), a joint venture company of PSUs of ministry of power, signed an agreement with oil marketing companies (OMCs) of ministry of petroleum and natural gas for distribution of energy efficient appliances under the flagship Unnat Jeevan by Affordable LEDs and applianc

Jammu airport’s upgraded terminal building inaugurated

Union minister for civil aviation, P Ashok Gajapathi Raju inaugurated the upgraded passenger terminal building of Jammu airport.   Notably, Jammu airport belongs to the Indian Air Force, and airports authority of India (AAI) maintains a civil enclave for civil aircraft operat

Election Commission shows it has spine

The election commission has become increasingly assertive in the past few months, showing its mettle in times of electoral challenges.   Weeks after rooting from EVMs and just days after the poll panel declared votes cast by two rebel Congress legislators in the Rajya Sabha e

Is Amit Shah`s blueprint for 350-plus seats in 2019 Lok Sabha elections achievable?

Is Amit Shah`s blueprint for 350-plus seats in 2019 Lok Sabha elections achievable?



Video

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter