Entry-Exit Gas Pipeline Tariff Charging Method - Its Adaptability in Indian Scenario

Abstract

Most important step in the process of fixing gas transportation tariff is to allocate total cost to the users in fair and transparent manner ensuring the efficiency of the gas pipeline. In India mainly two methods have been used for such allocation (i) Postalize Method and Zonal Method. Purpose of this paper is to study the Entry-Exit method’s adaptability in Indian Scenario. It has been observed that each method of tariff charging has its own benefits, considering the stage of Gas Industry, objective of the country etc. tariff method has to be adopted. Entry-Exit being the complex method can be adopted in India in a phased manner considering the requirement of the country.