PNGRB advances the process to set tariffs for the Awa-Salawas pipeline

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Awa-Salawas pipeline tariff process

Highlights

PNGRB has begun the process of determining the tariff for the Awa-Salawas Petroleum Pipeline under the revised rules effective from 1 August 2024.
HPCL submitted its tariff filing after the required deadline on 20 May 2026, proposing a rate of 6.42 rupees per metric tonne per kilometer effective from 1 February 2025.
The new tariff framework could have a long-term impact on regulatory clarity in India’s pipeline sector, oil marketing companies’ cost planning, and product flow strategies.

This article was translated from the original. Read the original version by our correspondent here.

Tariff proposal under the new rules

As per the Petroleum and Natural Gas Regulatory Board, the unit tariff for the Awa-Salawas Petroleum Product Pipeline is being determined under the revised rules effective from 1 August 2024. The pipeline was commissioned in February 2015, and the 2024 rules replace the previous 2010 framework with a more structured tariff-setting system.

Under the new guidelines, HPCL was required to file transportation rates at least six months before the milestone marking its 10th year of operations, which for this pipeline was 31 October 2024. Despite this, the company submitted its tariff filing on 20 May 2026, proposing a rate of 6.42 rupees per metric tonne per kilometer effective from 1 February 2025.

Cost calculations and regional impact

The calculation of the automated tariff is based on the discounted cash flow method, which takes net fixed assets into account from the 11th year of operations. The proposal also includes capital expenditure totaling 135.07 crore rupees across various years, along with operating costs and provisions for transportation losses.

The Board said it had invited stakeholders to comment on the filing to ensure the final applicable tariff is balanced and fair. The process could improve regulatory clarity in India’s pipeline sector and affect the transportation cost framework and long-term product flow planning for oil marketing companies.

Our previous report on PNGRB’s proposed amendments to the natural gas pipeline tariff framework (Draft PNGRB NGPL Tariff Amendment Regulations, 2026) noted that comments had been invited from stakeholders and the general public by 23 October 2026. The article explained that these changes could affect the transportation costs and usage charge structure for pipeline operators, gas suppliers, and large consumers, and that responses could be submitted by email or post before the deadline.

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