CNG, domestic PNG prices set to drop by Rs 2-3 per unit from January 1

NEW DELHI: Consumers across India are set to benefit from reduced prices of Compressed Natural Gas (CNG) and domestic Piped Natural Gas (PNG) as the Petroleum and Natural Gas Regulatory Board (PNGRB) announced a tariff rationalization that will come into effect from January 1, 2026.

A K Tiwari, Member, PNGRB, said that the new unified tariff structure will result in savings of Rs 2-3 per unit for consumers, depending on the state and applicable taxes.

The regulator has simplified the tariff structure by reducing the number of zones from three to two. Under the previous system announced in 2023, tariffs were divided into three distance-based zones — Rs 42 for distances up to 200 km, Rs 80 for 300-1,200 km, and Rs 107 for distances beyond 1,200 km.

“We have rationalized the tariff. Instead of three zones, there will be two zones, and the first zone will be applicable for CNG and domestic PNG customers on a pan-India basis”, Tiwari explained. The unified rate for Zone 1 has now been fixed at Rs 54, down from the earlier rates of Rs 80 and Rs 107.

The new tariff structure will benefit consumers across 312 geographical areas covered by 40 City Gas Distribution (CGD) companies operating in India. “This will benefit consumers in the transport sector who use CNG and households that use PNG in their kitchens”, Tiwari said.

The PNGRB has mandated that the benefit of this rationalized tariff must be passed on to consumers, and the regulator will actively monitor compliance. “Our role is to balance the interest of consumers as well as the operators in this business,” Tiwari added.

Discussing the expansion of CNG and PNG infrastructure, Tiwari said that licenses have been granted to cover the entire country, with operators including public sector undertakings (PSUs), private companies, and joint ventures.

The PNGRB is supporting CGD companies by facilitating interactions with state authorities, which has resulted in several states reducing Value Added Tax (VAT) and streamlining permission processes. “We are supporting them not just as a regulator but as a facilitator,” he said.

The government’s push to provide subsidized and rationalized gas for CNG and domestic PNG consumption is expected to drive growth in natural gas usage across the country, with the CGD sector identified as the primary growth driver for natural gas consumption in India. (ANI)