One nation, one grid, one tariff from January 2026: CNG and PNG prices to drop

Wednesday 17 December, 2025 | 10:50 PM READ MALAYALAM VERSION

NEW DELHI: The Petroleum and Natural Gas Regulatory Board has approved a unified transportation tariff to boost natural gas consumption across the country. The one nation, one grid, one tariff structure will come into effect from January 1, 2026.

CNG and domestic piped natural gas (PNG) prices will be reduced by up to Rs 3. The price of CNG will be reduced by Rs 1.25 to Rs 2.50 per kg, while the price of domestic piped natural gas (PNG) will be reduced by Rs 0.90 to Rs 1.80 per standard cubic metre. PNGRB Member A.K. Tiwari confirmed that India's new unified gas tariff structure will cut City Gas Distribution (CGD) transport costs by about Rs 1,000 crore annually. There are 40 city gas distribution (CGD) companies, including public sector ones, operating in 312 areas.

How is it a relief?

The transportation tariff was previously set in three zones. It has been reduced to two zones. With this, CNG and PNG consumers, even if they are far from the gas source, will only have to pay Rs. 54 per unit (MMBTU), the rate for Zone 1.

Zone One - Up to 300 km - Rs 54 per MMBTU (Million British Thermal Units - Standard Energy Unit of Natural Gas)

Zone Two - Above 300 km - Rs 102.86 per MMBTU

Tariff rates for 2023