NEW DELHI (Reuters) - India is planning a 25 percent to 30 percent hike in tariffs for local gas pipelines by end-December, an industry source with direct knowledge of the matter said on Wednesday.
India’s gas transportation regulator Petroleum and Natural Gas Regulatory Board (PNGRB) recently raised the tariff by the same range on seven local piplines. The new hike would apply to all remaining pipelines.
“Normally tariffs are revised in 5 years, but this revision is pending for quite some time,” the source said.
PNGRB’s chairman D K Sarraf said at a conference earlier on Wednesday that the board will hike the tariff for all pipelines by end-December but did not detail the size of the hike.
The tariff is the amount pipeline owners can charge to transport gas.
The move will benefit the country’s biggest natural gas transporter Gail (India) Ltd, western India-based state-owned gas transportation company Gujarat State Petroleum Corp and Mukesh Ambani’s Reliance Industries Ltd
Reporting by Nidhi Verma; editing by Richard Pullin