NEW DELHI: Indraprastha Gas Ltd has filed a petition in the high court against the oil regulator’s order that slashed pipeline tariff and compression charges, but the company has not obtained a stay order against the directive.
“The Delhi High Court has issued a notice to the petroleum regulator following a petition from Indraprastha Gas Ltd against an order that cut pipeline tariff and compression charges,” IGL said in a statement.
“Since the court has listed the matter for final hearing next week on April 19, 2012 and the matter is sub-judice, IGL would await the ruling of the court before taking any decision regarding implementing the order of the Board,” it said.
PNGRB has cut the network tariff of IGL by 63% and reduced compression charges by 59% for CNG supplied by IGL. The company also said it would also challenge the regulator in the appellate tribunal for electricity.
The regulator has also asked the company to cut retail prices to reflect the reduction in the network tariff and compression charges. It has asked the company to refund the difference to its customers for the period from April 1, 2008 till the date of issuance of order. IGL said that this was against the company’s policies.
“There are various issues in the order of the board which needs clarification, on which IGL will have to await the response of PNGRB before the court during the next hearing,” an IGL spokesman said.
IGL’s shares fell 33% on Tuesday following the order, which analysts say will reduce the company’s profit estimates by 80%.