PNGRB can’t fix gas prices: SC

New Delhi, July 1

The Supreme Court today held that Petroleum and Natural Gas Regulatory Board (PNGRB) was not entitled to determine the prices of compressed natural gas (CNG) and piped natural gas (PNG).

“The power to fix the tariff has not been given to the Board (PNGRB). In view of that, the Board cannot frame a Regulation which will cover the area pertaining to determination of network tariff for a city or local gas distribution network and compression charge for CNG.

“As the entire Regulation centres around the said subject, the said Regulation deserves to be declared ultra vires, and we do so,” a Bench comprising Justices Dipak Misra and UU Lalit said.

The judgment was delivered by dismissing the appeal filed by the PNGRB against the Delhi High Court decision by which the regulator’s order of fixing the prices of CNG and PNG in Delhi and adjoining areas was quashed.

The apex court upheld the High Court’s June 1, 2012 ruling that the Board was not empowered to fix or regulate the maximum retail price at which gas is to be sold by entities such as Indraprastha Gas Ltd, to the consumers.

Further, the Board is also not empowered to fix any component of network tariff or compression charge for an entity having its own distribution network, it said. — PTI