India's long awaited plan to simplify its gasoline pipeline tariff system has been announced with great fanfare. Dharmendra Pradhan, the oil minister said yesterday that India's current "zonal" tariff rates for gas pipelines resulted in higher transportation charges and had hindered development of gas markets and demand centres in remote areas.
The oil minister added that India, the world’s fourth largest importer of liquefied pure gasoline (LNG), is spending $60 billion to strengthen its gasoline infrastructure that features increasing the pipeline community and constructing gasoline import terminals.
"A level playing field (for tariffs) among the industries across the country will help in minimising their input cost and improve their competitiveness in global production," Pradhan said, speaking at a joint webinar with International Energy Agency chief Fatih Birol.
He said new rationalised tariff would help to promote faster development of city gas project to connect households, industries and transport sectors with gas network.