In exercise of the powers conferred by Section 61 of the Petroleum and Natural Gas Regulatory Board Act

## Policy Analysis Report: Amendment to Petroleum and Natural Gas Regulatory Board Determination of Petroleum and Petroleum Products Pipeline Transportation Tariff Regulations, 2010 **1. Executive Summary:** This report analyzes an amendment to the Petroleum and Natural Gas Regulatory Board (PNGRB) Determination of Petroleum and Petroleum Products Pipeline Transportation Tariff Regulations, 2010. The amendment extends the transitional period for tariff determination and introduces benchmarking against railway goods tariff tables. The core purpose is to allow for a further adjustment period in tariff determination and potentially align pipeline transportation tariffs with railway tariffs. Key findings indicate a delay in full implementation of the 2010 regulations and a potential shift towards comparative benchmarking in tariff setting. **2. Introduction:** This report provides an overview and analysis of the amendment to the Petroleum and Natural Gas Regulatory Board Determination of Petroleum and Petroleum Products Pipeline Transportation Tariff Regulations, 2010, based solely on the provided policy text. The report aims to inform stakeholders about the specific changes introduced by this amendment and their potential implications. **3. Policy Overview:** * This document amends the Petroleum and Natural Gas Regulatory Board Determination of Petroleum and Petroleum Products Pipeline Transportation Tariff Regulations, 2010. * Core Objective(s) (inferred): The core objectives of this amendment, inferred from the text, are to: * Extend the transitional period for implementing the tariff regulations. * Introduce a benchmarking mechanism for tariff determination, referencing railway goods tariff tables. **4. Background and Rationale:** This amendment appears to address a need for further adjustment time within the petroleum and natural gas pipeline transportation sector regarding tariff determination. The original regulations, as implied by the numerous previous amendments listed in the footnote, may have faced challenges in full and immediate implementation. This specific amendment extends the transition period and introduces a comparison to railway tariffs, possibly to ensure a more balanced and competitive tariff structure during the transition or as a general principle for setting tariffs. **5. Key Provisions / Changes:** This amendment introduces two key changes to the 2010 regulations: * **Change 1: Extension of Transitional Period:** * **Specific Part Changed:** Regulation 4 (related to transitional period). * **New Provision:** The transitional period, previously extended to 30.09.2021, is now further extended up to and inclusive of 30.09.2023. * **Effect of Change:** This provides pipeline operators with additional time to comply with the tariff regulations, delaying the full implementation of the original regulations by two years. * **Change 2: Benchmarking Against Railway Tariffs:** * **Specific Part Changed:** Regulation 5 (related to tariff determination). * **New Provision:** Tariff determination will be benchmarked against the goods tariff table of the railways, applicable on the date this amendment comes into force (October 1, 2021). Furthermore, the Board may consider revisions to railway tariffs during the extended transition period for benchmarking purposes. * **Effect of Change:** This introduces a comparative element in tariff setting. It suggests that pipeline tariffs will be considered in relation to the cost of transporting similar goods by rail. It also introduces a mechanism for the PNGRB to adjust pipeline tariffs based on changes to the railways' goods tariff table. **6. Target Audience and Stakeholders:** Based on the provided text, the primary target audience and stakeholders are: * Petroleum and natural gas pipeline operators. * Petroleum and Natural Gas Regulatory Board (PNGRB). * Potentially, consumers of petroleum and natural gas products (indirectly affected by transportation costs). * The Railways (as their tariff structure now influences petroleum product pipeline tariffs). **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Petroleum and Natural Gas Regulatory Board (PNGRB) is responsible for implementing and overseeing these amendments. * **Timelines:** The amendment comes into force on October 1, 2021. The extended transitional period ends on September 30, 2023. * **Specific to Changes:** The PNGRB will need to incorporate the railway goods tariff table into its tariff determination process. The PNGRB will also need to monitor revisions to the railway tariff table during the extended transitional period and assess whether to incorporate them for benchmarking purposes. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes and impacts of these changes are: * A more gradual transition to the tariff determination regulations for pipeline operators. * Potentially, a more competitive tariff structure for pipeline transportation, influenced by railway tariffs. * Increased scrutiny of pipeline transportation tariffs by the PNGRB, with a focus on comparability to railway costs. * Possible future tariff revisions based on railway tariff changes. **9. Conclusion:** The amendment to the Petroleum and Natural Gas Regulatory Board Determination of Petroleum and Petroleum Products Pipeline Transportation Tariff Regulations, 2010, represents a significant adjustment to the implementation timeline and introduces a new benchmarking element. The extension of the transitional period and the comparison to railway tariffs indicate a move towards a more flexible and potentially competitive framework for regulating pipeline transportation tariffs. This amendment is likely to impact pipeline operators directly and could indirectly affect consumers through transportation costs. The PNGRB's role in overseeing and implementing these changes, particularly in relation to monitoring and incorporating railway tariff revisions, is crucial.

Key Entities Referenced