CNG, Domestic PNG Prices to Fall from January 1 as PNGRB Cuts Transportation Charges

Announcing the change, PNGRB member A.K. Tiwari said the revised framework replaces the existing three-zone tariff system with a simpler two-zone structure. The move is aimed at ensuring more uniform pricing and reducing the cost burden on end users, particularly households and CNG vehicle owners.

Under the tariff mechanism introduced in 2023, pipeline charges were linked to distance, with three slabs ranging from ₹42 for up to 200 km to ₹107 for distances beyond 1,200 km. The new structure collapses these slabs into two zones, with the first zone uniformly applicable nationwide for CNG and domestic PNG consumers. According to the regulator, this will significantly lower transportation costs for city gas distribution (CGD) companies and, in turn, for consumers.

Tiwari said PNGRB has directed CGD operators to pass on the full benefit of the revised tariffs to customers. “The regulator will closely monitor compliance to ensure the savings reach consumers,” he said, adding that PNGRB’s role is to balance consumer interests with the viability of gas operators.

The price relief will benefit consumers in 312 geographical areas served by 40 CGD companies across India. CNG is sold by weight in kilograms, while PNG for households is billed in standard cubic metres (SCM), typically on a bi-monthly cycle.

The tariff reform comes amid a broader push to expand the CGD network nationwide. Tiwari said licences have already been issued to cover all regions, involving public sector firms, private players and joint ventures. PNGRB is also engaging with state governments to rationalise VAT and streamline approvals, positioning itself as both a regulator and facilitator for the sector’s growth.