PNGRB Announces Major CNG and PNG Price Reduction: Rs 2-3 Per Unit Savings Coming January 2026

The new tariff structure will benefit consumers across 312 geographical areas.

New Delhi:

Consumers throughout India will soon enjoy lower prices for Compressed Natural Gas (CNG) and domestic Piped Natural Gas (PNG) following the Petroleum and Natural Gas Regulatory Board's (PNGRB) announcement of tariff rationalization, effective January 1, 2026.

During an exclusive interview, PNGRB Member AK Tiwari revealed that the new unified tariff framework will deliver savings of Rs 2-3 per unit for consumers, with variations based on state location and applicable tax rates.

The regulatory body has streamlined the tariff structure by reducing the number of zones from three to two. The previous system implemented in 2023 featured three distance-based pricing zones: Rs 42 for distances up to 200 kilometres, Rs 80 for 300-1,200 kilometres, and Rs 107 for distances exceeding 1,200 kilometres.

"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 been established at Rs 54, representing a significant reduction from the previous rates of Rs 80 and Rs 107.

This new tariff structure will provide benefits to consumers across 312 geographical areas served by 40 City Gas Distribution (CGD) companies operating throughout India. "This will benefit consumers in the transport sector who use CNG and households that use PNG in their kitchens," Tiwari stated.

The PNGRB has mandated that CGD companies must pass on the benefit of this rationalized tariff directly to consumers and will actively monitor compliance with this directive. "Our role is to balance the interest of consumers as well as the operators in this business," Tiwari added.

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

The PNGRB is providing support to 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 emphasized.

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