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Petroleum and Natural Gas Regulatory Board (PNGRB) | Ministry of Petroleum and Natural Gas
On December 16, 2025, the Petroleum and Natural Gas Regulatory Board (PNGRB) notified a significant rationalization of the Unified Tariff (UFT) structure for natural gas transportation, aimed at advancing the national objective of “One Nation, One Grid, One Tariff“. The new framework, effective from January 1, 2026, is designed to reduce regional disparities and encourage the wider adoption of cleaner fuels.
Key Changes in the Tariff Structure:
Reduction in Zones: The number of tariff zones has been simplified from three to two:
Zone 1: Up to 300 km from the source.
Zone 2: Beyond 300 km.
Notified Rates:
Zone 1 Tariff: Rs. 54.00/MMBTU.
Zone 2 Tariff: Rs. 102.86/MMBTU.
National Benefit for Households and Transport: To specifically promote the use of Compressed Natural Gas (CNG) and Domestic Piped Natural Gas (PNG-D), PNGRB has mandated that the Zone 1 tariff (Rs. 54.00/MMBTU) will be applicable nationwide for these sectors, regardless of the distance from the gas source.
Financial Impact: This reform is expected to result in nearly 50% lower transportation charges for domestic and transport consumers located far from gas grids, leading to an estimated annual saving of Rs. 1,000 crore for the City Gas Distribution (CGD) sector.
Policy Relevance
The rationalization of UFT is a cornerstone of India’s strategy to increase the share of natural gas in its primary energy mix from 6% to 15% by 2030.
Affordability for Remote Regions: By extending the Zone 1 tariff nationwide for households and transport, the government is eliminating the “distance disadvantage” for states located far from coastal LNG terminals or domestic gas fields.
Consumer Savings: The reform is expected to directly reduce the delivered prices of CNG by Rs. 1.25–2.50 per kg and Domestic PNG by Rs. 0.90–1.80 per SCM.
Promotion of Future Fuels: PNGRB is also leveraging this framework to prepare for the integration of Hydrogen blending and Compressed Biogas (CBG) into the existing pipeline network, supporting a sustainable transition.
Relevant Question for Policy Stakeholders: How will PNGRB ensure that the savings from the reduced unified tariff are fully and transparently passed on by the City Gas Distribution (CGD) companies to the end-consumers?
Follow the full news here: PNGRB’s Unified Tariff revision