Big News for PNG-CNG Users: New Unified Tariff Rule to Make Gas Cheaper in Coming Days

Updated: 27-06-2025, 04.38 PM

A significant policy shift is on the horizon for users of Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) across India. In a landmark move, the Petroleum and Natural Gas Regulatory Board (PNGRB) has approved a new unified tariff regulation, which is expected to come into effect within the next 2-3 days. This reform is set to transform how gas pricing is calculated and bring price parity across regions, leading to cheaper gas in several cities and moderate hikes in others.

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What Is the Unified Tariff Rule?

Under the current system, the price of PNG and CNG is largely dependent on the distance from the gas source or pipeline origin, meaning cities farther away pay more. However, with the new unified tariff model, pricing will be determined by zones, not distance. This means that all cities within a particular zone will pay the same rate — regardless of their proximity to the gas source.

For example, under the new rule, Delhi and Ghaziabad, which fall under the same zone, will now have identical PNG and CNG prices, eliminating the historical cost difference based on distance.

Reduction in Tariff Zones: From 3 to 2

Sources reveal that the number of tariff zones will be reduced from 3 to 2, simplifying the pricing structure. This could result in price reductions in remote and long-distance cities, while urban centers located close to the gas source might see a slight price increase. The move is being hailed as a step toward “One Nation, One Tariff”, ensuring fair and transparent pricing for all.

Key Benefits and Impacts

1. Boost for Remote Regions

Companies that invest in setting up gas infrastructure in remote or underserved areas will now receive financial incentives. This will not only improve clean energy accessibility but also promote industrial growth in rural and semi-urban regions.

2. Support for Government Targets

This reform directly supports the government’s Common Minimum Program, which aims to:

Provide 120 million domestic PNG connections by 2030
Establish 17,500 new CNG stations across India
The unified tariff system will play a critical role in achieving these ambitious goals by making infrastructure development more viable in remote areas.

3. Stable and Predictable Prices

Consumers can expect greater price stability and transparency under the new structure. Businesses operating across multiple locations will benefit from uniform pricing, helping them plan better and maintain consistent cost structures.

4. Accelerated Infrastructure Development

Encouragement for investment in underserved areas means more pipelines, filling stations, and last-mile connectivity — expanding the national gas grid and ensuring more citizens have access to clean fuel.

What to Expect in Your City

The new tariff rule’s exact impact on individual cities will depend on:

The new tariff zone your city falls under
Your city’s current gas price under the old distance-based system

Likely Scenarios:

Cities close to pipelines may see marginal price increases
Distant cities that used to pay high rates may benefit from lower gas prices

In essence, while a few regions may experience modest hikes, a large number of cities are expected to see cost reductions, making clean energy more affordable.

A Step Toward Equitable Energy Access

This unified tariff regulation is a major stride toward a simplified, equitable, and rational energy pricing structure in India. It aligns with the broader national vision of promoting sustainable and accessible clean fuel across all geographies.

With implementation expected in just a few days, PNG and CNG users should prepare for a revised pricing structure — one that promises fairness, transparency, and better energy accessibility for all.

Author Profile

Kuldeep Singh Chundawat: My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.