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In a major relief for consumers across the country, the Petroleum and Natural Gas Regulatory Board (PNGRB) has announced a major overhaul of the natural gas transportation tariff system, which will result in lower CNG and domestic PNG prices.

The new structure set to take effect from January 1, 2026, is expected to yield direct savings for millions of consumers in 312 geographical areas served by 40 City Gas Distribution (CGD) companies. The number of tariff zones has been reduced from three to two under the new tariff regime: 300 km and beyond. The regulatory body has declared that the tariff applicable for the up to 300 km zone will be applicable all over the country for CNG and PNG-D sectors irrespective of the distance, as a measure to promote CNG and domestic PNG consumption further.

"This reform advances the objective of 'One Nation, One Grid, One Tariff', reduces regional disparities in transportation costs, and aligns natural gas pricing with the transportation cost policy of competitive fuels such as LPG and Motor Spirit. PNGRB has notified transportation tariffs of Rs 54.00/MMBTU (up to 300 km) and Rs 102.86/MMBTU (beyond 300 km) effective January 1 2026," PNGRB said in a statement.

According to PNGRB, the move is aimed at expanding the reach of clean fuel and reducing price disparities across states. The regulator’s initiative is being seen as a key step toward the vision of “One Nation, One Grid, One Tariff.” Previously, natural gas transportation in India was divided into three distance-based tariff zones, where charges increased with distance. This system affected CNG and PNG prices, often making gas more expensive in some states.

PNGRB has now simplified the structure to two tariff zones:

Up to 300 kilometres

Beyond 300 kilometres

The biggest benefit of the new tariff system is for CNG and domestic PNG consumers. PNGRB has clarified that only the tariff applicable up to 300 km will be charged nationwide, regardless of the gas source distance.

The PNGRB has notified the following rates:

Up to 300 km: Rs 54 per MMBTU

Beyond 300 km: Rs 102.86 per MMBTU

However, for CNG and domestic PNG, only Rs 54 per MMBTU will apply across India. This effectively reduces transportation costs by nearly 50 per cent in regions beyond 300 km.

With the adoption of the new model, the CGD industry is likely to reap a benefit of about Rs 1,000 crore which will be directly enjoyed by the customers.

CND rates may be reduced by Rs 1.25 to Rs 2.50 per kg

Domestic PNG might be reduced by Rs 0.90 to Rs 1.80 per SCM

Gas prices were formerly set according to the distance from the source, which caused marked differences within the same region. The decision of PNGRB is to eliminate the difference in prices among the regions by bringing the gas transportation policy closer to that of other fuels like LPG and petrol while at the same time cutting down consumer confusion.

The tariff revision is believed to be an incentive for government’s efforts towards cleaner fuels. The proposal of uniform and economical price is likely to induce more consumers to migrate from petrol and diesel to CNG and domestic PNG thereby cutting down pollution, reinforcing energy security and lowering import dependency.

It is the regulatory authority for the petroleum and natural gas sector in India.

A uniform transportation charge across the country.

Because transportation charges have been reduced.

Natural gas supplied to homes through pipelines.

From January 1, 2026.