The new unified tariff structure will increase savings. (file photo)
Consumers across India are going to benefit from lower prices of Compressed Natural Gas (CNG) and Domestic Piped Natural Gas (PNG). Petroleum and Natural Gas Regulatory Board (PNGRB) has announced changes in tariff (rationalization), which will be effective from January 1, 2026. In an exclusive interview, PNG RB member AK Tiwari said that with the implementation of the new unified tariff structure, consumers will save ₹2 to ₹3 per unit depending on the state and applicable taxes.
New Unified Tariff Structure
PNGRB has reduced the number of zones from three to two, simplifying the tariff system. Under the old system implemented in 2023, three zones were created on the basis of distance. The tariff was ₹42 for up to 200 kilometres, ₹80 for 300 to 1,200 kilometers and ₹107 for distances more than 1,200 kilometres. Tiwari said, we have rationalized the tariff. Now there will be two zones instead of three and the first zone will be applicable to CNG and domestic PNG customers across India. Now the unified rate for Zone-1 has been fixed at ₹54, which was earlier ₹80 and ₹107.
These people will benefit
The new tariff structure will benefit consumers across 312 geographical areas covered by 40 City Gas Distribution (CGD) companies operating in India. Tiwari said, this will benefit the transport sector using CNG and the households using PNG in their kitchen. PNGRB has directed that the full benefit of this rationalized tariff should be passed on to the consumers and it will also be monitored regularly. Tiwari said, our role is to maintain a balance between the interests of both consumers and operators associated with this business.
Gas infrastructure expansion
Talking about the expansion of CNG and PNG infrastructure, Tiwari said that licenses have been given to cover the entire country, which includes government companies (PSUs), private companies and joint ventures. PNGRB is helping CGD companies coordinate with state governments, due to which many states have reduced VAT and simplified the process of permissions. Tiwari said, we are not only playing the role of a regulator but also a facilitator. The government’s initiative to provide cheap and rationalized gas for CNG and domestic PNG is expected to accelerate the use of natural gas across the country. In India, CGD sector has been considered the main sector to increase natural gas consumption.