The Petroleum and Pure Fuel Regulatory Board (PNGRB) is looking for to declare greater than 50 metropolis fuel distribution licensed areas, together with Delhi, Mumbai and huge components of Gujarat, as widespread carriers.

All the town fuel areas recognized for the aim have already exceeded their exclusivity interval. For cities like Delhi and Mumbai, the exclusivity interval expired in 2012, whereas for a lot of others it ended within the years as much as 2021.

The downstream regulator’s transfer is more likely to have an effect on metropolis fuel distributors like Indraprastha Fuel in Delhi, Mahanagar Fuel in Mumbai and Gujarat Fuel in a number of cities.

Different distributors that will probably be affected by this embrace Gail Fuel, Indian Oil-Adani Fuel, Bhagyanagar Fuel, Maharashtra Fuel, Sabarmati Fuel, Central UP Fuel, Megha Engineering and Infra, Tripura Pure Fuel Firm, and Rajasthan State Fuel.

In notices printed on its web site, the regulator has sought feedback from stakeholders on the proposed transfer, which falls below Part 20 of the PNGRB Act. The notices carry particulars of the variety of piped fuel connections, size of pipeline, and CNG compression capability in every metropolis fuel space.

After the regulator declares a metropolis fuel space as a typical service, the unique licensee has to allow about 20% or extra of its community capability to be used by different suppliers. Elevated competitors amongst suppliers could assist reduce fuel payments for customers whereas squeezing income of the unique distributor.

Declaring metropolis fuel areas as widespread service, nevertheless, has not been straightforward for the regulator with licensees fiercely contesting previous makes an attempt in court docket. Indraprastha Fuel has beforehand fought PNGRB in court docket over the exclusivity interval.

Metropolis fuel areas that the PNGRB has recognized for widespread service embrace Bareilly, Kanpur, Dewas, Kota, Pune, Mathura, Kakinada, Sonipat, Meerut, Vijayawada, Thane, Indore, Firozabad, Hyderabad, Agra, Gandhinagar, Gwalior, Agartala, Anand, Surat, Ahmedabad, Hazira, Moradabad, Chandigarh, Allahabad, Jhansi, Bengaluru, Panipat, Daman, Haridwar, and Belgaum.

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