The Petroleum and Natural Gas Regulatory Board (PNGRB) has notified a new unified tariff structure for natural gas transportation, marking a major consumer-focused reform aimed at boosting the adoption of cleaner fuels across India. The revised framework will come into effect from January 1, 2026, and is expected to significantly lower transportation costs for Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) consumers.

Under the new regime, PNGRB has rationalised the existing tariff structure by reducing the number of tariff zones from three to two—up to 300 km and beyond 300 km. In a key move to promote cleaner fuel usage, the regulator has also mandated that CNG and Domestic PNG consumers across the country will be charged the tariff applicable for distances up to 300 km, irrespective of the actual distance from the gas source.

“This reform advances the objective of ‘One Nation, One Grid, One Tariff’, reduces regional disparities in transportation costs, and aligns natural gas pricing with the transportation cost policy of competitive fuels such as LPG and Motor Spirit. PNGRB has notified transportation tariffs of Rs 54.00/MMBTU (up to 300 km) and Rs 102.86/MMBTU (beyond 300 km) effective 1 January 2026,” Petroleum and Natural Gas Regulatory Board, regulator, said in a statement.

As a result, CNG and Domestic PNG consumers located beyond 300 km will see nearly a 50% reduction in transportation charges, as they will be billed at the Zone-1 tariff of Rs 54.00/MMBTU. The revised tariff structure is expected to reduce transportation costs for the City Gas Distribution (CGD) sector by approximately Rs 1,000 crore annually.

This cost rationalisation is likely to translate into lower delivered prices, with CNG becoming cheaper by Rs 1.25–2.50 per kg and Domestic PNG by Rs 0.90–1.80 per SCM. The move aligns with the Government of India’s broader vision to increase the share of natural gas in the national energy mix, enhance energy security, and accelerate the transition towards cleaner and more sustainable fuels.

News source: The Tribune