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

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

Report of India’s G20 Task Force on Digital Public Infrastructure released

The final ‘Report of India’s G20 Task Force on Digital Public Infrastructure’ by ‘India’s G20 Task Force on Digital Public Infrastructure for Economic Transformation, Financial Inclusion and Development’ was released in New Delhi on Monday. The Task Force was led by the

How the Great War of Mahabharata was actually a world war

Mahabharata: A World War By Gaurang Damani Sanganak Prakashan, 317 pages, Rs 300 Gaurang Damani, a Mumbai-based el

Budget expectations, from job creation to tax reforms…

With the return of the NDA to power in the recently concluded Lok Sabha elections, all eyes are now on finance minister Nirmala Sitharaman’s full budget for the FY 2024-25. The interim budget presented in February was a typical vote-on-accounts, allowing the outgoing government to manage expenses in

How to transform rural landscapes, design 5G intelligent villages

Futuristic technologies such as 5G are already here. While urban users are reaping their benefits, these technologies also have a potential to transform rural areas. How to unleash that potential is the question. That was the focus of a workshop – “Transforming Rural Landscape:

PM Modi visits Rosatom Pavilion at VDNKh in Moscow

Prime minister Narendra Modi, accompanied by president Vladimir Putin, visited the All Russian Exhibition Centre, VDNKh, in Moscow Tuesday. The two leaders toured the Rosatom Pavilion at VDNKh. The Rosatom pavilion, inaugurated in November 2023, is one of the largest exhibitions on the histo

Let us pledge to do what we can for environment: President

President Droupadi Murmu on Monday morning spent some time at the sea beach of the holy city of Puri, a day after participating in the annual Rath Yatra. Later she penned her thoughts about the experience of being in close commune with nature. In a message posted on X, she said: