Regulator for lower terminal charges, GST to cut gas prices

PNGRB says high infra costs, coupled with state-level taxes, are keeping gas prices elevated

- Rituraj Baruah

The regulator said that non-inclusion of natural gas under the indirect tax regime has resulted in state governments levying high rates of value-added tax.

(REUTERS)

In a bid to make natural gas cheaper and boost adoption, India’s gas regulator has proposed regulating the regasification charges for liquefied natural gas (LNG) and bringing the fuel under the goods and services tax (GST), citing low utilization and weak financial viability at most terminals.

In a paper on ‘regasification, listed gas marketing and CGD entities’, published on its website on 24 December, the Petroleum and Natural Gas Regulatory Board (PNGRB) said high and unregulated infrastructure costs, coupled with state-level taxes, are keeping gas prices elevated despite large investments in regasification capacity. Implementation of the PNGRB's proposals would require statutory changes.