New Delhi [India], March 24 : In a significant move to attract investment and enhance gas consumption, particularly in the CNG and domestic PNG sectors, the Petroleum and Natural Gas Regulatory Board (PNGRB) has proposed amendments to the PNGRB (Determination of Natural Gas Pipeline Tariff) Regulations, 2008.
The regulatory body released a Public Consultation Document on March 21, 2025, inviting stakeholder input on various aspects of natural gas pipeline tariff regulations. Key proposals include reducing unified tariff zones from three to two, applying the zone one unified tariff to all CNG and PNG-Domestic customers, incentivizing isolated network operators and pipelines, equally distributing the benefits of volumes beyond the normative threshold between consumers and pipeline operators, and creating policies for the long-term procurement of System Use Gas.
In an exclusive interview with ANI, AK Tiwari, Member, PNGRB, highlighted the main aspects of the consultation: "There were three zones; now we are going to have two zones. We have also kept a cap on tariff for PNG and CNG customers that will benefit them directly."
Tiwari added that the board is working on incentivizing pipeline operators in isolated fields across Gujarat, Tamil Nadu, and Assam, where earnings are currently negative. For operators earning above the normative 75 per cent, he proposed a 50-50 sharing arrangement where "50 per cent would be passed to customers and 50 per cent operators can retain for infrastructure development as a development reserve fund."
"These reforms are primarily in the interest of customers, but also benefit pipeline operators by incentivizing them and giving impetus for increased investment," Tiwari explained.
PNGRB has authorised approximately 33,475 km of the natural gas pipeline network nationwide, with around 24,945 km already operational. The remaining pipelines are at various stages of construction.
in the City Gas Distribution (CGD) sector, PNGRB has authorised development across the entire country except for islands. According to the Minimum Work Programme, India aims to have 120 million PNG domestic connections and 17,500 CNG stations by 2030. As of December 2024, the country has approximately 7,395 CNG stations and 14 million PNG domestic connections.
Gas consumption in the CGD sector is expected to grow at a CAGR of approximately 10% by 2030. Supporting this growth, the Government of India has given priority allocation of APM gas to CNG and PNG-Domestic customers.
The PNGRB previously implemented amendments in 2020 and 2022 to boost investment and gas consumption in remote areas, offering incentives including Unified Tariff (under three zones), Integrated Tariff, and various operational adjustments.
The latest amendments are expected to be implemented by the end of May 2025.