India's Gas Consumers to Benefit from Unified Tariff Structure

Indian CNG and PNG consumers will enjoy reduced prices with a new unified tariff structure announced by the PNGRB. The tariff rationalization, effective January 2026, aims to simplify the system and ensure cost savings for consumers, with the government supporting infrastructure growth nationwide.

Consumers across India are expected to benefit from reduced prices of Compressed Natural Gas (CNG) and domestic Piped Natural Gas (PNG) as a result of a new tariff structure announced by the Petroleum and Natural Gas Regulatory Board (PNGRB). The tariff rationalization is set to take effect from January 1, 2026.

In an interview, AK Tiwari, a member of the PNGRB, revealed that the unified tariff structure would lead to savings of Rs 2-3 per unit for consumers. Previously, tariffs were divided into three distance-based zones, but this has been simplified to two zones, with a unified rate for Zone 1 now fixed at Rs 54.

The new structure will benefit transport sector consumers using CNG and households using PNG, with 312 geographical areas serviced by 40 City Gas Distribution companies. The PNGRB has emphasized that these savings must be passed on to consumers, highlighting their role in balancing consumer and operator interests.

Expansion of CNG and PNG infrastructure is also underway, with licenses granted nationwide. The PNGRB is aiding City Gas Distribution companies in navigating state interactions to reduce taxes and streamline processes, further supporting the infrastructure growth as a facilitator.

The initiative aligns with the government's efforts to provide subsidized and rationalized gas, positioning the City Gas Distribution sector as a major driver for increased natural gas consumption across India. The PNGRB intends to closely monitor compliance with these changes to ensure benefits reach consumers.

(With inputs from agencies.)