The Hindu Business Line : Petroleum & gas regulatory board on the cards

The aim of setting up the board is to ensure uninterrupted and adequate supply of petroleum, petroleum products and natural gas to all parts of country.

New Delhi , May 23

THE Government has proposed to set up a petroleum and gas regulatory board to regulate refining, processing, storage, transportation, distribution, marketing and sale of petroleum and petroleum products, the Secretary of the Ministry of Petroleum and Natural Gas, Mr S.C. Tripathi, said here on Monday.

The move, which is to see "the light of day soon," will protect the interest of consumers and entities engaged in specified activities related to petroleum products and natural gas, Mr Tripathi added.

Delivering the inaugural address at a seminar on `Dynamics of hydrocarbon sector', organised by the Confederation of Indian Industry, Mr Tripathi said that the Ministry had proposed further changes, since the gas regulator should be different from the petroleum regulatory board. The aim of setting up the board is to ensure uninterrupted and adequate supply of petroleum, petroleum products and natural gas to all parts of country. Outlining the functions of the board, he said that the regulator would grant marketing rights for notified petroleum products and permission for establishing LNG terminals. It would also regulate the transportation of petroleum products, including gas by pipelines, apart from protecting consumer interests by monitoring prices and ensuring adequate availability.

On the issue of downstream product pricing, the Secretary said that there is a need to give subsidy in a transparent manner to both public and private sector undertakings and also allow free float in pricing beyond the subsidy. Besides, the absence of a level playing field and value-added tax in the oil sector is affecting downstream product pricing.

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