The prices will come down as the Petroleum and Natural Gas Regulatory Board has simplified the tariff structure by reducing the number of zones from three to two.
The new year is expected to bring good news for consumers, as the Petroleum and Natural Gas Regulatory Board (PNGRB) announced a tariff rationalisation that will take effect on January 1, 2026. According to a report, depending on the state and applicable taxes, the new unified tariff structure will help consumers save up to Rs 3 per unit. The prices will come down as the board has simplified the tariff structure by reducing the number of zones from three to two.
“We have rationalised the tariff. Instead of three zones, there will be two zones, and the first zone will be applicable for CNG and domestic PNG customers on a pan-India basis,” AK Tiwari, Member, PNGRB, was quoted as saying by news agency ANI.
Unified rate for Zone 1
The unified rate for Zone 1 has now been fixed at Rs 54, down from the earlier rates of Rs 80 and Rs 107.
The previous system, which was announced in 2023, had tariffs divided into three distance-based zones. Rs 42 for distances up to 200 kilometres, Rs 80 for 300-1,200 kilometres, and Rs 107 for distances beyond 1,200 kilometres.
“The new tariff structure will benefit consumers across 312 geographical areas covered by 40 City Gas Distribution (CGD) companies operating in India. This will benefit consumers in the transport sector who use CNG and households that use PNG in their kitchens,” Tiwari said.
PNGRB expert panel for sweeping reform to unlock the free gas market
PNGRB has called for sweeping structural reforms to create a free, competitive natural gas market in India, arguing that market-driven pricing and open access are essential for the country’s clean energy transition.
In its report, Vision 2040 – Natural Gas Infrastructure in India, the panel led by former PNGRB chairperson D K Sarraf said a liberalised gas market would enhance transparency, spur investment, improve resource allocation and deepen liquidity.
A competitive system, it said, would remove current market distortions and attract new players across exploration, pipelines, LNG terminals and city gas distribution.
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