Facts For Prelims
Source: PIB
Context: The Petroleum and Natural Gas Regulatory Board has implemented the Unified Tariff, a long-awaited reform in the natural gas sector.
What is a Unified Tariff?
The Unified Tariff is a way to calculate the price of transporting natural gas across different pipelines in India. This helps to ensure that the cost of transporting gas is fair and consistent across the country.
About Unified Tariff:
PNGRB (the regulator) has notified a levelized unified tariff of ₹73.93 per metric million British thermal units (MMBTU) and created three tariff zones for unified tariff:
- First zone is up to a distance of 300 km from the gas source
- Second zone is 300 – 1200 km
- Third zone is beyond 1200 km
Significance: The Unified Tariff is expected to assist in achieving the ‘One Nation One Grid One Tariff’ model and stimulate gas markets in remote areas.
The Ministry of Petroleum & Natural Gas bi-annually revises the price of natural gas produced from various sources
About One Nation, One Gas Grid:
One Nation, One Gas Grid refers to the integration of the regional grids thus establishing a National Grid for providing energy produced by natural gas to various stakeholders.
At present, there are about 17,000 km long Natural Gas pipeline network, with an additional over 15000 km of pipelines to be completed under the National Gas Grid
About Petroleum and Natural Gas Regulatory Board
Petroleum and Natural Gas Regulatory Board (PNGRB) is a statutory body, constituted under Petroleum and Natural Gas Regulatory Board Act, 2006. Its primary functions include regulation of refining, transportation, distribution, storage, marketing, supply and sale of petroleum products and natural gas.
