CNG and PNG Prices to Drop by ₹2-3 per Unit from January 1, 2026
Consumers across India will soon enjoy cheaper CNG and domestic piped natural gas (PNG). The Petroleum and Natural Gas Regulatory Board (PNGRB) has announced a reduction in gas transportation charges and simplified the tariff structure, which will be effective from January 1, 2026. According to AK Tiwari, a member of PNGRB, the new unified tariff structure will allow consumers across different states to save ₹2-3 per unit, depending on state taxes.
New Tariff Structure: Two Zones Instead of Three
AK Tiwari told ANI that in the current system implemented in 2023, the tariff was divided into three zones based on distance. The charges were ₹42 for up to 200 km, ₹80 for 300 to 1,200 km, and ₹107 for distances above 1,200 km. The new system simplifies this by reducing it to two zones. The first zone will have a uniform rate across the country for CNG and domestic PNG consumers, which will reduce transport costs and benefit consumers directly.
How is CNG and PNG Measured?
CNG is measured and sold in kilograms (kg) in India. This is because CNG is compressed at very high pressure, making it difficult to measure by volume (liters or cubic meters), as the volume changes with temperature and pressure. However, the weight (kg) remains constant. One kg of CNG is approximately equal to 1.39 standard cubic meters (SCM).
PNG, on the other hand, is measured in standard cubic meters (SCM) since it is supplied through pipelines to homes with normal pressure, making it easier to measure by volume. The PNG bill is calculated based on the SCM reading from the meter and is typically issued every two months.
312 Geographical Areas to Benefit
This change will benefit consumers in 312 geographical areas where 40 city gas distribution (CGD) companies are operating. Tiwari mentioned that both CNG vehicle users and households using PNG for cooking will benefit. PNGRB has clearly stated that the savings should reach consumers, and the regulator will monitor compliance. Tiwari emphasized that PNGRB’s role is to balance the interests of consumers and operators.
Expansion of CGD Sector
On the expansion of the CNG and PNG network, Tiwari mentioned that licenses have been issued to cover the entire country, including public sector companies, private companies, and joint ventures. PNGRB is working to reduce VAT and simplify processes in various states. He added that the regulator is not just a monitoring body but also plays the role of a facilitator in this sector.