Urban gas consumers to benefit from low pipeline tariffs

Pipeline operators to procure 75% of annual system-use gas via contracts

- ARUNIMA BHARADWAJ

The Petroleum and Natural Gas Regulatory Board (PNGRB) on Friday announced a simplified pipeline tariff structure—a move expected to reduce transportation costs for city gas distribution (CGD) companies and potentially improve their profit margins.

Following the announcement, shares of Indraprastha Gas (IGL) and Mahanagar Gas (MGL) rose. IGL's stock closed at 226.25 per share on Friday, up 3.22% from its previous close. MGL's shares ended at 1,542.20, marking a 2.27% gain.

The regulator has amended the Natural Gas Pipeline Tariff Regulations 2025, reducing the number of Unified Tariff Zones from three to two. These amendments aim to simplify the tariff and market structure, promote the use of cleaner fuels, and help build an inclusive gas-based economy, according to PNGRB.