CGD transport costs to fall by ₹1,000 cr a year after PNGRB tariff revamp

PNGRB has cut tariff zones to two and will apply the lower Zone-1 rate for CNG and domestic PNG nationwide, reducing delivered CNG prices by Rs 1.25-2.50 per kg and PNG by Rs 0.90-1.80 per SCM

The transportation cost of the city gas distribution (CGD) sector is expected to reduce by approximately ₹1,000 crore annually following rationalisation of gas pipeline tariff structure by India’s gas regulator.

 

In a consumer-centric reform, the Petroleum and Natural Gas Regulatory Board (PNGRB) reduced the number of tariff zones from three to two in order to promote the use of natural gas. The two tariff zones would be up to 300 km and beyond 300 km.

 

The announced reforms would lead to a reduction in delivered prices for consumers of compressed natural gas (CNG) by ₹1.25-2.50 per kg and domestic piped