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