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Landmark Judgment for CGD Sector, Investment Most likely to Spur High

News

The Petroleum and Natural Gas Regulatory Board (PNGRB) does not have powers to fix retail tariffs, the Supreme Court said on Wednesday, upholding a Delhi High Court ruling. 

Source:  ET

SNP Insights

Supreme court ruling of dismissing PNGRB plea for controlling Retail CGD tariff is a landmark judgment for CGD sector. As this verdict may bring about clarity among investors, regarding tariff framework & ll give much needed autonomy in terms of market linking the CGD price. Hence investment in CGD is most pertinent to grow. Yet challenges like rising domestic gas cost & availability of alternate fuels still exist. Companies need to factor out all these parameters while fixing out the judicious tariff, failing which end consumer may switch to other alternative energy sources, which can be catastrophic for the CGD segment. 

Source: SNP Infra Research