Gas Prices Set to Drop: New Pipeline Tariff Brings Relief to Millions

In an effort to make cleaner energy cheaper, the Petroleum and Natural Gas Regulatory Board (PNGRB) has suggested a new tariff regime for natural gas pipelines. The reform is intended to lower the price of Compressed Natural Gas (CNG) for automobiles and Piped Natural Gas (PNG) for domestic cooking, easing the burden on millions of consumers.

The proposal entails reducing the number of tariff zones from three to two and providing the lowest rates for city gas distributors who provide CNG and PNG. Addressing distance-based pricing imbalances, the new policy provides uniformity and affordability, particularly for consumers far from the locations of gas sources. This step comes in line with the government's aspiration to increase gas consumption and encourage cleaner energy sources.

The PNGRB's move is an extension of the harmonized pipeline tariff regime that came into effect in 2023, which integrated gas transportation expenses right across the nation. The regulator hopes for the new reform to boost investments in the gas industry, promote increased use of natural gas, and help India's energy transition objectives.

Public consultations are ongoing, with stakeholders being encouraged to make their inputs on this revolutionary policy to make "One Nation, One Grid, One Tariff" a reality.

Sources: Daily Pioneer, Autocar Professional, Times Bul