There is good news for the people of entire India. From January 1, 2026, the prices of Compressed Natural Gas (CNG) and Domestic Piped Natural Gas (PNG) will be reduced. The Petroleum and Natural Gas Regulatory Board (PNGRB) has decided to simplify gas transportation tariffs. Consumers will benefit from this.

PNGRB member AK Tiwari said in an interview that the new unified tariff system will save people Rs 2 to 3 per unit. This saving will depend on the state and the tax imposed. In the earlier system, the tariff was divided into three zones. It was Rs 42 per unit for distance up to 200 km, Rs 80 for distance 300 to 1200 km and Rs 107 per unit for distance more than 1200 km. Now the number of zones has been reduced to two.

Tariff will be made easier

Tiwari said, ‘We have simplified the tariff. Now there will be two zones and the first zone will be applicable for CNG and domestic PNG customers across India. The new rate for Zone-1 has been fixed at Rs 54 per MMBtu, which is much lower than the earlier Rs 80 and Rs 107.

This new rule will benefit customers of 40 City Gas Distribution (CGD) companies operating in 312 geographical areas of India. Tiwari ji said, ‘This will directly benefit the people who use CNG in the transport sector and those who use PNG for cooking in their homes.’

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PNGRB has given strict instructions to the companies that the savings from this tariff must be passed on to the customers. The board will also monitor this. Tiwari ji said, ‘Our job is to balance the interests of both consumers and companies.’

Licenses have been granted

On the issue of expanding the infrastructure of CNG and PNG, Tiwari ji said that licenses have been given to cover the entire country. This includes government companies, private companies and joint ventures.

PNGRB is helping CGD companies by talking to state governments. This has reduced Value Added Tax (VAT) in many states and made the permission process easier. Tiwari ji said, ‘We are not only in the role of regulator but also in the role of helper.’

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The government aims to provide subsidized and easily priced gas for CNG and domestic PNG. This will increase the use of natural gas in the entire country. CGD sector is considered to be the main driver of increasing natural gas consumption in India. It is expected that this change will promote clean energy and also reduce the burden on people’s pockets.