NEW DELHI [India], December 17 (ANI): Consumers across India are set to benefit from lower prices of Compressed Natural Gas (CNG) and domestic Piped Natural Gas (PNG) from January 1, 2026, following a tariff rationalisation announced by the Petroleum and Natural Gas Regulatory Board (PNGRB).
In an exclusive interview, PNGRB Member A K Tiwari said the new unified tariff structure is expected to result in savings of Rs 2–3 per unit for consumers, depending on the state and applicable taxes.
Under the revised framework, the regulator has simplified the tariff structure by reducing the number of distance-based zones from three to two. The earlier system, announced in 2023, had tariffs of Rs 42 for distances up to 200 kilometres, Rs 80 for distances between 300 and 1,200 kilometres, and Rs 107 for distances beyond 1,200 kilometres.
“We have rationalised the tariff. Instead of three zones, there will now be two zones, and the first zone will apply to CNG and domestic PNG customers on a pan-India basis,” Tiwari said. The unified rate for Zone 1 has been fixed at Rs 54, down from the earlier higher slabs of Rs 80 and Rs 107.
The revised tariff structure will benefit consumers across 312 geographical areas served by 40 City Gas Distribution (CGD) companies nationwide. “This will benefit consumers in the transport sector who use CNG and households that use PNG for cooking,” Tiwari said.
The PNGRB has directed CGD companies to pass on the benefits of the rationalised tariff to consumers and said compliance will be closely monitored. “Our role is to balance the interests of consumers as well as the operators in this business,” Tiwari added.
On the expansion of CNG and PNG infrastructure, Tiwari said licences have already been granted to cover the entire country, with participation from public sector undertakings, private firms, and joint ventures.
He said the regulator is also facilitating coordination between CGD companies and state governments, leading to reductions in value-added tax and smoother approval processes in several states. “We are supporting them not just as a regulator, but also as a facilitator,” he said.
The government’s push to provide subsidised and rationalised gas for CNG and domestic PNG is expected to accelerate the use of natural gas nationwide, with the CGD sector identified as the primary driver of future growth in gas consumption.
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