PNGRB notifies tariff reforms; reduces zones to two, extends benefit to PNG and CNG users

In a statement, PNGRB said the reforms, approved in its recent board meeting, aim to deepen gas penetration and reinforce the “One Nation, One Grid, One Tariff” objective.

New Delhi: The Petroleum and Natural Gas Regulatory Board (PNGRB) has notified the Second Amendment to the Natural Gas Pipeline Tariff Regulations, 2025, reducing the number of unified tariff zones from three to two and extending tariff benefits to city gas users across the country.In a statement, PNGRB said the reforms, approved in its recent board meeting, aim to deepen gas penetration and reinforce the “One Nation, One Grid, One Tariff” objective.

As per the notification, a nationwide two-zone unified tariff structure will now be applicable in place of the existing three-zone regime. The benefit of the Zone-1 unified zonal tariff has also been extended to Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) domestic segments.

The amendment further mandates that at least 75 per cent of the system-use gas requirement of a natural gas pipeline entity must be procured through long-term contracts with a minimum duration of three years.

The Board has also introduced a Pipeline Development Reserve mechanism under which the earnings of an entity will be shared equally between the entity and the customers once pipeline utilisation exceeds 75 per cent. The customer share will be passed on through tariff adjustments.

PNGRB said these reforms are designed to enhance access, improve procurement stability, and reduce transaction costs while promoting a sustainable natural gas pipeline infrastructure development model.