PNGRB Eyes Boost in Gas Sector with Tariff Reforms

The PNGRB has proposed changes to natural gas pipeline tariffs to stimulate investment and boost consumption in the CNG and PNG sectors. Key changes include reducing tariff zones, capping tariffs for customers, and incentivizing operators. The reforms aim to balance benefits between consumers and operators, promoting sector growth.

In a landmark effort to draw investment and enhance gas usage in the CNG and domestic PNG sectors, the Petroleum and Natural Gas Regulatory Board (PNGRB) has proposed significant amendments to the existing natural gas pipeline tariff regulations.

Announced on March 21, 2025, the proposed changes include reducing unified tariff zones from three to two and enforcing a consistent tariff for all CNG and PNG-Domestic consumers. The board aims to incentivize operators in isolated networks, ensuring benefits from increased gas volumes are shared equitably between consumers and pipeline operators.

AK Tiwari, a PNGRB member, emphasized that benefits will also extend to pipeline operators through incentives that encourage further development, particularly in deficit regions like Gujarat, Tamil Nadu, and Assam. With ambitions set for 120 million PNG connections and 17,500 CNG stations by 2030, the regulatory board's new measures aim to support a 10% CAGR in the CGD sector by increasing gas consumption.

(With inputs from agencies.)