Archive · 23 Dec 2025
PNGRB's Tariff Reset Aims to Lower CNG and PNG Prices
The Petroleum and Natural Gas Regulatory Board (PNGRB) is changing how much it costs to transport natural gas across India.
Starting from January 2026, there will be two zones for pricing: one for distances up to 300 km and another for distances beyond 300 km.
Everyone using CNG (for vehicles) and PNG (for homes) will pay the same lower rate, no matter where they are.
This change is expected to make CNG and PNG cheaper for consumers.
The goal is to make natural gas more popular and to help India use more natural gas in the future.
Right now, natural gas makes up only 6% of India's energy use, but the government wants to increase that to 15% by 2030.
PNGRB simplifies transportation tariffs to two zones: up to 300 km and beyond 300 km.
Uniform transportation charges of ₹54 per MMBtu for all CNG and PNG consumers, regardless of distance.
Expected reduction in CNG prices by ₹1.25-2.50 per kg and PNG by ₹0.90-1.80 per SCM.
Annual cost savings of ₹1,000 crore for the city gas distribution (CGD) sector.
Government aims to increase natural gas share in India's energy basket to 15% by 2030.
- Who
- Petroleum and Natural Gas Regulatory Board (PNGRB)
- What
- Simplification of transportation tariffs for CNG and PNG
- When
- Effective from 1 January 2026
- Where
- Across India
- Why
- To lower regional disparities and align natural gas pricing with competitive fuels
- Effective Date
- 1 January 2026
- New Tariff Zones
- Up to 300 km and beyond 300 km
- Transportation Charges
- ₹54 per MMBtu for up to 300 km, ₹102.86 per MMBtu beyond 300 km
- Consumer Benefit
- CNG prices to drop by ₹1.25-2.50 per kg, PNG by ₹0.90-1.80 per SCM
- Annual Cost Savings
- ₹1,000 crore for CGD sector
- Government Target
- 15% share of natural gas in India's energy basket by 2030
- Current Gas Consumption
- 5,722 mmscm in October 2025, down 14.6% from previous year
- CGD Growth
- 7% year-on-year growth in October 2025