No need for single regulator for entire oil sector: DGH
At present, the DGH acts as a regulator for the upstream sector while a regulator for the downstream sector has been proposed by the Government.
By PTI |
NEW DELHI: The Director General of Hydrocarbons (DGH) on Monday disfavoured a single regulator for the entire oil sector, arguing that the regulatory mechanisms for both downstream and upstream would be enough to address various issues.
"There is no need for a single oil regulator with far-reaching powers. The problems can be addressed by the regulators in both downstream and upstream sectors," DGH V K Sibal said at a meeting of the infrastructure sector organised by the Planning Commission.
The Planning Commission has, in its Integrated Energy Policy, recommended an independent oil regulator to ensure a level-playing field, besides regulating domestic natural gas (LPG) prices on a cost plus basis.
Questions were raised on the powers of DGH after Niko announced trebling of gas reserves at the Krishna-Godavari Basin. The DGH had protested to Niko for failing to inform it as announcements of such discoveries are price-sensitive from the stock market perspective.
At present, the Directorate General Hydrocarbons acts as a regulator for the upstream sector while a regulator for the downstream sector has been proposed by the Government.
The proposed downstream regulator will cater to the gas sector as well.
The Government has in the meanwhile, strengthened the DGH by assigning it more powers. The new powers include designing stringent disclosure norms for new discoveries and also monitoring the Government revenue.
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