Fri. Sep 24th, 2021

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#6 CGD Regulation INDIA -THE PETROLEUM AND NATURAL GAS REGULATORY BOARD ACT, 2006

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CGD & gas transmission sectors come under the purview of PNGRB, which also regulates refining, processing, storage, transportation, distribution, marketing & sales of petroleum products. PNGRB is established by the act of parliament. The creation of the regulator in 2006 paved the way for the long-term growth of the midstream & downstream segments, as it has ushered in greater regulatory clarity in areas such as CGD and laying of gas-transmission pipelines. PNGRB aims to ensure fair trade; register standards and authorize entities for specified activities, lay down technical & safety standards, monitor tariffs and prevent restrictive trade practice.

Function of PNGRB;

The Board shall-

(A) Protect the interest of consumers by fostering fair trade and competition amongst the entities;

(B) Register entities to-

  1. market notified petroleum and petroleum products and, subject to the contractual obligations of the Central Government, natural gas;
  2. establish and operate liquefied natural gas terminals;
  3. establish storage facilities for petroleum, petroleum products or natural gas exceeding such capacity as may be specified by regulations;

(C) Authorise entities to-

  1. lay, build, operate or expand a common carrier or contract carrier;
  2. lay, build, operate or expand city or local natural gas distribution network;

(D) Declare pipelines as common carrier or contract carrier;

(E) Regulate, by regulations,-

  1. access to common carrier or contract carrier so as to ensure fair trade and competition amongst entities and for that purpose specify pipeline access code;
  2. transportation rates for common carrier or contract carrier;
  3. access to city or local natural gas distribution network so as to ensure fair trade and competition amongst entities as per pipeline access code;

(F) In respect of notified petroleum, petroleum products and natural gas-

  1. ensure adequate availability;
  2. ensure display of information about the maximum retail prices fixed by the entity for consumers at retail outlets;
  3. monitor prices and take corrective measures to prevent restrictive trade practice by the entities;
  4. secure equitable distribution for petroleum and petroleum products;
  5. provide, by regulations, and enforce, retail service obligations for retail outlets and marketing service obligations for entities;
  6. monitor transportation rates and take corrective action to prevent restrictive trade practice by the entities;

(G) Levy fees and other charges as determined by regulations;

(H) Maintain a data bank of information on activities relating to petroleum, petroleum products and natural gas;

(I) Lay down, by regulations, the technical standards and specifications including safety standards in activities relating to petroleum, petroleum products and natural gas, including the construction and operation of pipeline and infrastructure projects related to downstream petroleum and natural gas sector;

(J) Perform such other functions as may be entrusted to it by the Central Government to carry out the provisions of this Act.

(K) Determination of Marketing Margin

Sources: https://www.pngrb.gov.in/Functions-of-Board.html

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