PNGRB unveils key reforms in gas pipeline tariff rules to boost affordability and transparency

New Delhi: In a major step towards creating a unified and consumer-friendly natural gas market, the Petroleum and Natural Gas Regulatory Board (PNGRB) has approved sweeping reforms to the gas pipeline tariff structure. The reforms are aimed at improving affordability, promoting infrastructure development, and strengthening the government’s vision of “One Nation, One Grid, One Tariff.” Under the revised framework, the number of unified tariff zones has been reduced from three to two, simplifying the tariff regime and bringing more clarity to end-users and stakeholders. This strategic move is expected to enhance the ease of doing business and ensure equitable access to natural gas across the country.

In a significant consumer-centric measure, the benefit of Zone 1 tariff — which includes the lowest transportation cost — has now been extended across India for Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) supplied to households. This will directly help urban and rural consumers by reducing energy costs and encouraging a shift towards cleaner fuel alternatives. To ensure long-term price stability, the reforms mandate long-term fuel procurement strategies. This will allow for better forecasting, reduce tariff volatility, and help consumers and businesses plan their energy usage more efficiently. Additionally, infrastructure development will now be directly linked to the performance of existing pipelines. This performance-based approach is intended to incentivize efficient operation, improve pipeline utilization, and avoid overcapacity. PNGRB stated that these changes are a continuation of its efforts to build a more transparent and equitable gas market in India. The regulatory body has called all stakeholders and media platforms to help amplify these critical developments for broader public awareness.

The full details of the reforms can be accessed through PNGRB’s official website: https://pngrb.gov.in/eng-web/index.html