PNGRB Announces Temporary Waiver of Imbalance Charges

The Petroleum and Natural Gas Regulatory Board (PNGRB) has announced a temporary waiver of imbalance charges for entities, shippers, and consumers in the natural gas sector.

Key Highlights

The waiver has been introduced due to the ongoing geopolitical crisis in the Gulf region affecting energy supplies.

It addresses disruptions in supply, logistics, and market conditions in the gas sector.

No imbalance charges will be levied for:

Gas scheduling

Offtake

Transportation

Balancing

The relief measure will remain applicable till 30 June 2026.

Entities must still comply with other operational and regulatory requirements.

What are Imbalance Charges?

These are penalties imposed when actual gas usage deviates from scheduled quantities.

Ensures grid stability and efficient pipeline operations.

Applicable in gas transportation and distribution networks.

PNGRB – Key Details

Established under PNGRB Act, 2006

Functions:

Regulation of petroleum and natural gas sector

Ensuring fair trade and competition

Authorizing pipelines and city gas distribution (CGD) networks

Natural Gas in India

Target: Increase share of natural gas in energy mix to 15% by 2030

Considered a cleaner fossil fuel (lower CO₂ emissions than coal & oil)

Major uses:

CNG (transport)

PNG (household cooking)

Fertilizer & power sector

City Gas Distribution (CGD) Network

Expands supply of:

CNG stations

PNG connections

Regulated and authorized by PNGRB

Key for urban energy transition & pollution reduction

India’s Energy Security Context

India imports a large share of hydrocarbons

Supply disruptions (e.g., Gulf region tensions) impact:

Prices

Availability

Hence, regulatory interventions like waivers help stabilize the market