GAIL Gas cuts CNG, domestic PNG prices
New Delhi: GAIL Gas Ltd on Thursday announced a Rs 1 reduction in CNG price and the rate for natural gas piped to household kitchens for cooking purposes following rationalisation of pipeline tariffs.
The announcement comes a day after Indraprastha Gas Ltd, India’s largest city gas retailer, cut prices of natural gas piped into household kitchens for cooking in Delhi and NCR towns by Rs 0.70 per standard cubic meters. Prior to that, Think Gas had cut CNG prices by Rs 2.50 per kg and that of domestic piped natural gas (PNG) by up to Rs 5 per standard cubic meters (scm).
“GAIL Gas Limited has reduced the cost of domestic piped natural gas (PNG) and compressed Natural Gas (CNG) by Rs 1 per SCM and Rs 1 per kg, respectively, across all its authorised areas in the country,” the firm said in a statement.
The price cut comes into effect from Thursday in GAIL Gas’ geographical areas (GAs) in Uttar Pradesh, Karnataka, Madhya Pradesh, Haryana, Uttarakhand, Jharkhand, Chhattisgarh, Rajasthan and Odisha. Speaking on the decision, a GAIL Gas officer said the Ministry of Petroleum & Natural Gas and sector regulator Petroleum and Natural Gas Regulatory Board (PNGRB) continue to implement progressive policy measures that are fostering a favourable and financially sustainable ecosystem for the growth of the CNG and domestic PNG market in India.
PNGRB on December 16 announced a rationalised tariff structure for pipelines that move natural gas - the feedstock for generating electricity, producing fertiliser, making CNG and used as fuel in household kitchens. The revised tariffs, which are effective January 1, make natural gas transportation simpler, fairer and more cost-effective for consumers and the city gas distribution sector.
Under the revised regime, effective January 1, 2026, the number of distance-based tariff zones has been reduced from three to two - up to 300 km and beyond - with a single lower Zone-1 rate (around Rs 54 per million British thermal unit) now applied nationwide for CNG and domestic PNG customers, regardless of distance from the gas source, according to PNGRB.
“The recent revision of the Unified Tariff by PNGRB, from January 1, 2026, including the applicability of Zone-1 tariff to city gas distribution (CGD) entities for CNG and domestic PNG segments, is set to significantly reduce the transportation cost of natural gas,” the company official said.
He said the decision of GAIL Gas to reduce prices is in line with the Government of India’s vision of a gas-based economy and to further encourage the adoption of clean fuels.
