CNG and domestic PNG will be cheaper from January 1: Consumers will save Rs 2 to 3 on every unit; Gas Regulatory Board reduced transportation charges

Consumers across the country will soon get cheaper CNG and domestic piped natural gas (PNG). The Petroleum and Natural Gas Regulatory Board (PNGRB) has announced to reduce and simplify gas transportation charges, which will be effective from January 1, 2026.

PNGRB member AK Tiwari said the new unified tariff structure will save consumers in different states ₹2-3 per unit, depending on the state and tax.

2 zones instead of 3 in the new tariff structure

PNGRB member A.K. Tiwari told in an exclusive interview that in the system implemented in 2023, the tariff was divided into 3 zones on the basis of distance. In this, Rs 42 is charged from 0 to 200 km.

Whereas between 300 to 1,200 km, Rs 80 is charged and for more than 1,200 km, Rs 107 is charged. Now this system has been simplified to two zones.

Tiwari said, the first zone will be applicable uniformly across the country for CNG and domestic PNG consumers. This will reduce transport costs, which will reach the consumer directly.

How is CNG calculated?

CNG is measured and sold in kilograms (kg) in India. Because CNG is compressed at very high pressure, it is difficult to measure it in volume (litres or cubic metres) as volume varies with temperature and pressure. But the weight (kg) always remains the same. 1 kg CNG is approximately equal to 1.39 SCM (Standard Cubic Meter). You get it filled in kg at the pump.

PNG is measured in SCM (Standard Cubic Meter). This gas comes into the house through a pipe, the pressure is normal, hence it is easily measured in volume. SCM appears in the bill. PNG bill comes every 2 months and SCM is calculated from meter reading.

Consumers of 312 geographical areas benefit

This change will benefit 312 geographical areas where 40 City Gas Distribution (CGD) companies are operating. Tiwari said, this will benefit both the vehicles using CNG and the houses using PNG in their kitchen.

PNGRB has clearly told the gas distribution companies that this savings should reach the consumers. The regulator will monitor compliance. Tiwari said that our role is to balance the interests of consumers and operators.

Expansion of CGD sector

Talking about the expansion of CNG and PNG network, Tiwari said that licenses have been given to cover the entire country, which includes public sector companies, private companies and joint ventures.

PNGRB is working to reduce VAT and simplify the process in many states. He said that the regulator is not only a monitor but is also playing the role of a facilitator in this area.