CNG, PNG Prices to Fall from January 2026
ECONOMY & POLICY

CNG, PNG Prices to Fall from January 2026

Consumers using Compressed Natural Gas and domestic Piped Natural Gas across India are set to benefit from lower prices starting January 1, 2026, following a move by the Petroleum and Natural Gas Regulatory Board to rationalise gas transportation tariffs. The reduction will come into effect with the implementation of a simplified and unified pipeline tariff structure, which is expected to reduce costs for city gas distribution companies and translate into savings of around Rs 2–3 per unit for consumers, depending on location and applicable taxes.

PNGRB Member A K Tiwari said the regulator has replaced the earlier three-zone, distance-based tariff framework with a two-zone structure to improve uniformity and reduce regional disparities. The previous system, introduced in 2023, resulted in higher transportation tariffs for regions located farther from gas sources. Under the revised structure, the Zone 1 tariff has been fixed at Rs 54 on a pan-India basis for CNG and domestic PNG consumers, compared with earlier rates that went up to Rs 107 in certain regions.

The rationalised tariff structure will benefit consumers across 312 geographical areas served by 40 city gas distribution companies, covering both transport users dependent on CNG and households using PNG for cooking. The PNGRB has directed CGD operators to ensure that the benefit of lower transportation costs is passed on to end consumers, adding that compliance will be closely monitored.

Alongside tariff reforms, the regulator is facilitating the expansion of gas infrastructure nationwide. Licences have been issued to ensure coverage across the country, with participation from public sector undertakings, private players and joint ventures. Several states have also reduced value-added tax on natural gas and simplified permission processes to support faster rollout. With lower prices and expanding infrastructure, the government expects increased adoption of natural gas, with the city gas distribution sector playing a central role in promoting cleaner fuel usage.

Consumers using Compressed Natural Gas and domestic Piped Natural Gas across India are set to benefit from lower prices starting January 1, 2026, following a move by the Petroleum and Natural Gas Regulatory Board to rationalise gas transportation tariffs. The reduction will come into effect with the implementation of a simplified and unified pipeline tariff structure, which is expected to reduce costs for city gas distribution companies and translate into savings of around Rs 2–3 per unit for consumers, depending on location and applicable taxes. PNGRB Member A K Tiwari said the regulator has replaced the earlier three-zone, distance-based tariff framework with a two-zone structure to improve uniformity and reduce regional disparities. The previous system, introduced in 2023, resulted in higher transportation tariffs for regions located farther from gas sources. Under the revised structure, the Zone 1 tariff has been fixed at Rs 54 on a pan-India basis for CNG and domestic PNG consumers, compared with earlier rates that went up to Rs 107 in certain regions. The rationalised tariff structure will benefit consumers across 312 geographical areas served by 40 city gas distribution companies, covering both transport users dependent on CNG and households using PNG for cooking. The PNGRB has directed CGD operators to ensure that the benefit of lower transportation costs is passed on to end consumers, adding that compliance will be closely monitored. Alongside tariff reforms, the regulator is facilitating the expansion of gas infrastructure nationwide. Licences have been issued to ensure coverage across the country, with participation from public sector undertakings, private players and joint ventures. Several states have also reduced value-added tax on natural gas and simplified permission processes to support faster rollout. With lower prices and expanding infrastructure, the government expects increased adoption of natural gas, with the city gas distribution sector playing a central role in promoting cleaner fuel usage.

Next Story
Real Estate

Integrated Waterproofing Strategies

Waterproofing buildings used to be an annual pre-monsoon affair but the evolution of real-estate development has changed that approach. In new developments, developers are weaving waterproofing solutions into both the design and construction phases, an approach that Nikhil Madan, Managing Director, Mahima Group, says, “is all about ensuring lasting durability [of the building] and keeping lifecycle risks including water seepage and extensive maintenance to a minimum.”Watertight by designAluminium formwork systems aren’t commonly thought of as a waterproofing tool but at the Mahima Group,..

Next Story
Infrastructure Urban

GROHE Showcases Water-Led Design At Milan

GROHE unveiled its GROHE SPA Aqua Sanctuary at Milan Design Week 2026, transforming Piccolo Teatro Studio Melato into an immersive showcase of water, design and wellbeing. Built on the philosophy of ‘Wellbeing Through Water’, the installation reimagined bathrooms as holistic spaces for relaxation, rejuvenation and self-care.The Aqua Sanctuary was presented through three interconnected sanctums. The first showcased the 3D-printed GROHE SPA AquaTree shower and faucet, highlighting bespoke innovation and biophilic design. The second featured the Atrio Private Collection and GROHE SPA x Buster..

Next Story
Infrastructure Transport

Rahee Group Expands Rail Manufacturing Capacity

Rahee Group has outlined a multi-year investment roadmap to expand its operational footprint and strengthen manufacturing capabilities for India’s growing railway and urban transit sector. The Group is expanding in Odisha with a new Track Component Casting Unit, for which the groundbreaking ceremony was held on 8 April 2026 in the presence of Odisha Chief Minister Mohan Charan Majhi.The Group’s flagship EPC arm, Rahee Infratech Ltd, continues to focus on complex rail infrastructure projects, including track systems, bridges, viaducts and ballastless infrastructure. Its wholly owned subsidi..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

-->