PNGRB increases pipeline tariff for petroleum product transport, shifting from railway benchmarks to an independent structure, effective August 1.
Oil regulator PNGRB increases tariff for petroleum product pipeline transport, providing a boost to companies like Indian Oil Corporation and Reliance Industries Ltd. New tariff rates, effective from Aug 1, move away from railway tariff benchmarks to an independent yardstick structure. Pipelines commissioned before 2010 will see a 17% increase, followed by 3.4% annual escalations from 2025-26. Pipelines commissioned after 2010 will use the discounted cash flow (DCF) methodology, with a 12% post-tax return on capital employed over the economic life of the pipeline.
July 26, 2024
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