CNG, PNG Prices: Starting 1 January next year, consumers will benefit from a reduction in the prices of CNG for vehicles and PNG for homes. The tariff adjustment announced by the Petroleum and Natural Gas Regulatory Board (PNGRB) will come into effect from 1 January 2026. This will result in a reduction in the prices of CNG used in vehicles and PNG used in homes. Consumers across India stand to benefit from reduced prices of Compressed Natural Gas (CNG) and domestic Piped Natural Gas (PNG) as the PNGRB has announced a tariff rationalisation, which will come into effect on 1 January.

AK Tiwari, Member of the PNGRB, stated that the new unified tariff structure will lead to savings of Rs 2-3 per unit for consumers, depending on the state and applicable taxes. The regulator has simplified the tariff structure by reducing the number of zones from three to two. Under the previous system, announced in 2023, tariffs were divided into three distance-based zones: Rs 42 for distances up to 200 kilometres, Rs 80 for distances between 300 and 1,200 kilometres, and Rs 107 for distances beyond 1,200 kilometres.

“We have rationalised the tariff. Instead of three zones, there will now be two, and the first zone will apply to CNG and domestic PNG customers across the entire country,” Tiwari explained. The unified rate for Zone 1 has now been fixed at Rs 54, down from the previous rates of Rs 80 and Rs 107.

The new tariff structure will benefit consumers in 312 geographical areas covered by 40 City Gas Distribution (CGD) companies operating in India. Under the system announced in 2023, the tariff was divided into three distance-based regions. For distances up to 200 kilometres, the rate was set at Rs 42, for distances between 300 and 1,200 kilometres, it was Rs 80, and for distances over 1,200 kilometres, it was Rs 107. Now, there will only be two regions. The first region, covering CNG and domestic PNG customers, will apply nationwide. The unified rate for this first region has been set at Rs 54, which is lower than the earlier rates of Rs 80 and Rs 107.

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This new tariff structure will benefit consumers in 312 geographical areas covered by 40 CGD companies across the country. The PNGRB has mandated that the benefits of this rationalised tariff be passed on to consumers, and the regulator will actively monitor compliance.

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Discussing the expansion of CNG and PNG infrastructure, Tiwari mentioned that licences have been granted to cover the entire country, with operators including public sector undertakings (PSUs), private companies, and joint ventures. The government’s push to provide subsidised and rationalised gas for CNG and domestic PNG consumption is expected to drive growth in natural gas usage across the country, with the CGD sector identified as the key growth driver for natural gas consumption in India.