+
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.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code