The Petroleum and Natural Gas Regulatory Board (PNGRB) has rationalised the unified tariff structure for the transportation of natural gas, reducing the number of tariff zones from three to two.
Effective from January 1, 2026, a transportation tariff of Rs 54 per million British thermal units (mBtu) would be applicable for distances up to 300 km, and Rs 102.86 per mBtu for distances beyond 300 km. However, for compressed natural gas (CNG) and domestic piped natural gas (PNG) consumers, Zone-1 tariff of Rs 54 per mBtu would be applicable, expected to result in around a 50 per cent lower transportation charge for consumers located beyond 300 km.
With the revised tariff, transportation cost for the city gas distribution (CGD) sector is expected to fall by approximately Rs 10 billion a year, leading to a reduction in delivered prices of CNG by Rs 1.25-2.50 per kg and domestic PNG by Rs 0.90-1.80 per standard cubic metre (scm).
These reforms are in line with the target to raise the share of natural gas in the energy mix, strengthen energy security and support the transition towards cleaner and sustainable fuel.