

Mint Explainer | How PNGRB’s tariff reset could lower CNG and PNG prices
Subscribe to enjoy similar stories. NEW DELHI: Millions of CNG and domestic PNG users across India could pay less for gas as the Petroleum and Natural Gas Regulatory Board (PNGRB) simplifies transportation tariffs under its “One Nation, One Grid, One Tariff" vision. The regulator has reduced the number of tariff zones from three to two—up to 300 km and beyond 300 km—aiming to lower regional disparities and align natural gas pricing with competitive fuels such as liquefied petroleum gas (LPG), or cooking gas, and petrol.
Mint explains what the change means for consumers and the city gas distribution (CGD) sector. From 1 January 2026, transportation charges will be ₹54 per metric million British thermal units (MMBtu) for distances up to 300 km and ₹102.86 per MMBtu beyond 300 km. However, all CNG and domestic PNG consumers will be charged the Zone 1 rate of ₹54 per MMBtu, irrespective of distance.
This replaces the 2023 tariff regime, under which pipeline charges were split into three slabs: ₹42 for up to 200 km, ₹80 for 200–1,200 km, and ₹107 for distances beyond 1,200 km. Transportation currently accounts for about 9% of the overall cost of natural gas procured by CGD players. The revised tariff structure will result in nearly 50% lower transportation charges for consumers located beyond 300 km.
With uniform transportation tariffs across the country, retail consumers are expected to directly benefit through lower CNG and PNG prices, according to PNGRB. PNGRB estimates the revised tariffs will reduce CGD transportation costs by around ₹1,000 crore annually, translating into lower delivered prices for consumers—CNG by ₹1.25-2.50 per kg and domestic PNG by ₹0.90-1.80 per standard cubic metre (SCM). The tariff
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