November 14, 2018 / 7:17 AM / a month ago

India to hike tariff for local pipelines by 25-30 percent: industry source

Birds fly past the logo of India's state-owned natural gas utility GAIL (India) Ltd installed on its corporate office building in New Delhi, April 26, 2018. REUTERS/Adnan Abidi/Files

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

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