Full benefit of gas reforms hasn't reached end user: Hardeep Puri
natural gas sector has not reached the end customer, oil minister Hardeep Puri has said, adding that the government will take all measures to ensure compliance by city gas companies.
“At the end of the day our objective is, and should always be, to bring the energy, gas to the consumer at the most affordable rates,” Puri said on Monday after distributing letters of intent to the winners of city gas licenses in the North-East and Jammu & Kashmir.
“What has been happening so far, and I’m not intending this as a criticism, but whilst the government has taken a number of measures, the full benefit of that pass-through has not come to the customer. And that, I think, can be easily seen if you see what the profit sheets of all the companies are,” he said.
“As a minister, I have taken some drastic decisions, we are willing to take more drastic decisions. I’m not saying it’s his fault or my fault.”
Last year, the government changed the pricing policy for natural gas used for cooking at home and for vehicles, bringing in a cap and a floor to ensure both producers and consumers are protected from extreme volatility.
Monopoly over licensed areas for too long has ensured strong profits for city gas companies. Listed city gas companies have routinely shown far higher returns on investments than natural gas producers or refiners.
“The fact of the matter is if you have low punitive provisions and you are not able to enforce compliance, you have difficulty,” Puri said. “So, I’m very clear in my mind, that we’ve finished all
